With a market cap of $151.8 billion, Thermo Fisher Scientific Inc. (TMO) is a global leader in serving science, offering innovative technologies, services, and solutions to accelerate research and improve healthcare. Based in Waltham, Massachusetts, it operates through Life Sciences Solutions, Analytical Instruments, Specialty Diagnostics, and Laboratory Products & Biopharma Services segments.

Companies valued at $10 billion or more are generally described as “large-cap” stocks, and Thermo Fisher Scientific fits this description perfectly. The company has established a strong presence across multiple life sciences sectors, supported by advanced R&D capabilities, an efficient PPI system, and a portfolio of life-changing therapies.

However, the stock has declined 35.7% from its three-year high of $627.88 touched on Sept. 10. In addition, TMO stock has dipped 23.7% over the past three months, significantly underperforming the broader Nasdaq Composite ($NASX), which gained 1.7% during the same period. 

In the long term, TMO is down 22.4% on a YTD basis, notably lagging behind NASX's marginal slip. Additionally, shares of Thermo Fisher Scientific have dropped 29.5% over the past 52 weeks, compared to NASX’s 12.7% increase over the same period.

To confirm its recent downturn, TMO stock has traded consistently below its 50-day and 200-day moving averages since mid-February.

Despite reporting better-than-expected Q1 2025 results, Thermo Fisher Scientific stock fell marginally on Apr. 23. The company reported revenue of $10.4 billion, a marginal year-over-year increase that surpassed Street estimates of $10.3 billion. Growth was recorded in the Life Sciences Solutions, Analytical Instruments, and Specialty Diagnostics segments, while revenue declined 1.4% in the Laboratory Products and Biopharma Services segment. Its adjusted operating income declined marginally to $2.3 billion, with an adjusted operating margin of 21.9%. However, its adjusted EPS was $5.15, up from $5.11 in the year-ago quarter, and exceeded the analysts’ estimate by nearly 1%.

Meanwhile, compared to its rival, IDEXX Laboratories, Inc. (IDXX) has outpaced TMO. IDXX has risen 24.7% on a YTD basis and edged up 2% over the past 52 weeks.

Despite TMO’s underperformance over the past year, analysts remain optimistic about its prospects. Among the 24 analysts covering the stock, there is a consensus rating of “Strong Buy,” and its mean price target of $560.32 suggests a 38.9% upside potential from current price levels.