1 Healthcare Stock for Long-Term Investors and 2 to Question
The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. Taking that into account, here is one resilient healthcare stock at the top of our wish list and two we're steering clear of.
Market Cap: $162.1 billion
With over 14,000 sales personnel and a portfolio spanning more than 2,500 technology manufacturers, Thermo Fisher Scientific (NYSE:TMO) provides scientific equipment, reagents, consumables, software, and laboratory services to pharmaceutical, biotech, academic, and healthcare customers worldwide.
Why Does TMO Worry Us?
Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
Efficiency has decreased over the last five years as its adjusted operating margin fell by 10 percentage points
Waning returns on capital imply its previous profit engines are losing steam
At $429.33 per share, Thermo Fisher trades at 18.1x forward P/E. If you're considering TMO for your portfolio, see our FREE research report to learn more.
Market Cap: $6.43 billion
With roots dating back to the pioneering days of nuclear magnetic resonance technology, Bruker (NASDAQ:BRKR) develops and manufactures high-performance scientific instruments that enable researchers and industrial analysts to explore materials at microscopic, molecular, and cellular levels.
Why Is BRKR Not Exciting?
Expenses have increased as a percentage of revenue over the last two years as its adjusted operating margin fell by 5.1 percentage points
Free cash flow margin shrank by 9.4 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
Shrinking returns on capital suggest that increasing competition is eating into the company's profitability
Bruker is trading at $42.13 per share, or 15.3x forward P/E. Dive into our free research report to see why there are better opportunities than BRKR.
Market Cap: $28.93 billion
With over 80% of its revenue derived from federal government contracts, Humana (NYSE:HUM) provides health insurance plans and healthcare services to approximately 17 million members, with a strong focus on Medicare Advantage plans for seniors.
Why Do We Like HUM?
12.2% annual revenue growth over the last five years surpassed the sector average as its offerings resonated with customers
Dominant market position is represented by its $120.2 billion in revenue, which gives it negotiating power over membership pricing and reimbursement rates
Estimated revenue growth of 6.2% for the next 12 months implies its momentum over the last two years will continue
Humana's stock price of $239.68 implies a valuation ratio of 16x forward P/E. Is now the time to initiate a position? Find out in our full research report, it's free.
Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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