macro

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.

the public page opens no earlier than 15 minutes after we detect the story. approved stories may reach the api sooner. connect the api →

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.

tags

instruments

TMOWATHealthcare stocksNasdaq

sources

  1. Two stocks poised to benefit from rotation out of AI — invezz.com, 19 October 2026 at 18:22 UTC

prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.

the public page opens no earlier than 15 minutes after we detect the story. approved stories may reach the api sooner.

get stories in real time ↗