Thermo Fisher Scientific (TMO) Traded Down due to Concerns Over Spending Cuts

Soumya Eswaran

Mon, Jul 7, 2025, 6:24 AM 3 min read

ClearBridge Investments, an investment management company, released its “ClearBridge Large Cap Growth Strategy” second quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, the growth stocks rebounded from tariff uncertainty, with technology and communication services sectors leading in the return to a risk-on environment. The S&P 500 Index returned 10.9% in the quarter, while the technology-heavy NASDAQ Composite soared 17.7%. The benchmark, the Russell 1000 Growth Index, rose 17.8% in the quarter, outperforming the Russell 1000 Value Index. Against this backdrop, the strategy underperformed its benchmark in the second quarter. IT and communication services sectors contributed to the performance while the health care sector detracted. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second quarter 2025 investor letter, ClearBridge Large Cap Growth Strategy highlighted stocks such as Thermo Fisher Scientific Inc. (NYSE:TMO). Thermo Fisher Scientific Inc. (NYSE:TMO) offers life sciences solutions, analytical instruments, specialty diagnostics, laboratory products, and biopharma services. The one-month return of Thermo Fisher Scientific Inc. (NYSE:TMO) was 6.83%, and its shares lost 20.51% of their value over the last 52 weeks. On July 3, 2025, Thermo Fisher Scientific Inc. (NYSE:TMO) stock closed at $429.33 per share, with a market capitalization of $162.069 billion.

ClearBridge Large Cap Growth Strategy stated the following regarding Thermo Fisher Scientific Inc. (NYSE:TMO) in its second quarter 2025 investor letter:

"We were also disappointed with the weak quarterly performance of several of our more defensive, countercyclical holdings. Also in health care, Thermo Fisher Scientific Inc. (NYSE:TMO) lagged due to concerns around spending cuts in the academic/government and biopharma segments due to regulatory fears from tariffs and MFN pricing."

A workstation in a research lab stocked with laboratory products and services.

Thermo Fisher Scientific Inc. (NYSE:TMO) is in 26th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 101 hedge fund portfolios held Thermo Fisher Scientific Inc. (NYSE:TMO) at the end of the first quarter, compared to 100 in the fourth quarter.  While we acknowledge the potential of Thermo Fisher Scientific Inc. (NYSE:TMO) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.