Thermo Fisher and Waters: analyst sees healthcare gaining as investors leave AI stocks
Josh Brown of Ritholtz flags lab equipment suppliers Thermo Fisher and Waters as tech stocks come under pressure. Source: invezz.com.
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what happened
Josh Brown, chief executive of Ritholtz, tells invezz.com that investors looking beyond artificial intelligence should watch two healthcare names: Thermo Fisher (TMO) and Waters (WAT). He sees lab equipment suppliers attracting buyers as their businesses improve and tech shares lose support.
Waters reported second-quarter sales of $1.645 billion, including $817 million from the businesses it acquired from BD. Its legacy operation grew 7% as reported and 9% at constant exchange rates. The company raised its full-year organic growth forecast to 7%-9% and its adjusted earnings guidance to $14.55 per share.
Thermo Fisher posted sales of $11.99 billion, up 10%, with 5% organic growth. Adjusted earnings rose 13% to $6.03 per share, and adjusted operating margin widened to 22.8%. The company reports its earnings on October 21.
why it matters
Both stocks have already rallied strongly, and Waters trades at about 30 times the midpoint of its adjusted earnings guidance. Brown says further gains will need proof of steady demand and successful integration of acquisitions. For the market, this points to a possible shift in investor preference, not a buy recommendation.
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- Two stocks poised to benefit from rotation out of AI — invezz.com, 19 October 2026 at 18:22 UTC
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