Thermo Fisher Scientific (TMO) is Positioned for Resurgence

Fenimore Asset Management, an investment management company, released its Q2 2026 investor letter. You can download the letter here. U.S. equity markets saw broad gains in Q2, driven by strong corporate earnings, economic resilience, and enthusiasm for artificial intelligence (AI). Major indices reached all-time highs, though the energy sector declined. Continued earnings growth, especially among AI-related investments, supported the rally. Technology, particularly semiconductors, led performance as demand for AI infrastructure surged. Despite macroeconomic uncertainties and interest rate influences, Fenimore remains committed to investing in high-quality businesses. The Fenimore Value Strategy achieved a 9.35% return in the quarter, underperforming the Russell Midcap Index, which returned 13.83% due to its significant exposure to AI. The fund's relative underperformance was influenced by the absence of certain positions, especially in the information technology and industrial sectors. Additionally, reviewing the Fund's top five holdings could help identify its best picks for 2026.

In its second-quarter 2026 investor letter, Fenimore Asset Management highlighted Thermo Fisher Scientific Inc. (NYSE:TMO) as a newly added position. Thermo Fisher Scientific Inc. (NYSE:TMO) is a life science company focusing on providing life sciences solutions, analytical instruments, specialty diagnostics, and laboratory products and biopharma services. On September 17, 2026, Thermo Fisher Scientific Inc. (NYSE:TMO) closed at $658.32 per share. Over the past month, Thermo Fisher Scientific Inc. (NYSE:TMO) returned 4.51%, and its shares are up 37.13% over the past year. Thermo Fisher Scientific Inc. (NYSE:TMO) has a market capitalization of $242.56 billion, and its stock has traded within a 52-week range of $435.27 to $663.57.

Fenimore Asset Management stated the following regarding Thermo Fisher Scientific Inc. (NYSE:TMO) in its Q2 2026 investor letter:

We continued to build our position in Ryan Specialty Holdings (RYAN) and initiated new positions in Thermo Fisher Scientific Inc. (NYSE:TMO) and Tyler Technologies (TYL). We view TMO as a leading "picks-and-shovels" provider to the life sciences industry, supplying essential tools, consumables, and services across drug discovery and production. Despite recent share lag from post-COVID normalization and pharma funding concerns, we believe TMO is well positioned to resume growth as industry trends remain strong, supported by a large base of recurring revenue tied to long-term processes that drives durable demand.