Thermo Fisher Scientific (TMO): Cyclical Bottom Signals Re-Acceleration Toward Historical Growth Soumya Eswaran Fri, November 13, 2026 at 11:26 AM EST 3 min read ^GSPC -0.93% TMO -0.65% Trade TMO on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Sound Shore Management, an investment management firm, has released its third-quarter 2026 investor letter. The letter can be downloaded here. In the quarter, the Sound Shore Fund Investor Class (SSHFX) and Institutional Class (SSHVX) declined by 1.37% and 1.34%, respectively, underperforming the Russell 1000 Value Index (up 2.61%) and the S&P 500 (up 2.30%). Over three years, SSHFX gained 19.67%, while SSHVX gained 19.91%, both lower than the Russell Value's 20.07% and the S&P 500's 22.89%. Long-term, Sound Shore's 35-year annualized returns of 10.44% for SSHFX and 10.70% for SSHVX compared to the Russell Value's 10.38% and S&P 500's 11.02% return. In the quarter, the market remained resilient, with the S&P 500 gaining 2.3% despite macroeconomic challenges, while concentration risk in technology stocks remains high despite breadth weakening. The median stock in the Russell 1000 Value Index showed less than 1% growth year-to-date. Looking ahead, geopolitical tensions and macroeconomic uncertainties, particularly with the U.S. midterm elections, may affect market volatility. Sound Shore remains committed to its strategy of focusing on cash-flow-resilient businesses with robust balance sheets while maintaining a disciplined investment process. Also, check the fund's top five holdings to see its best picks in 2026.
In its Q3 2026 investor letter, Sound Shore Fund highlighted Thermo Fisher Scientific Inc. (NYSE:TMO) as a newly added position. Thermo Fisher Scientific Inc. (NYSE:TMO) is a life science company that focuses on providing life sciences solutions, analytical instruments, specialty diagnostics, laboratory products, and biopharma services. On November 12, 2026, Thermo Fisher Scientific Inc. closed at $699.44 per share with a market capitalization of $259.15 billion. Over the past month, Thermo Fisher Scientific Inc. returned 0.61%, and its shares are up 19.96% over the past year.
Sound Shore Fund stated the following regarding Thermo Fisher Scientific Inc. (NYSE:TMO) in its Q3 2026 investor letter:
"A new addition to the portfolio and our top performer for the quarter was Thermo Fisher Scientific Inc. (NYSE:TMO), a leading life sciences tool and lab equipment supplier that we have owned successfully in the past. We purchased the stock in June 2026, when it traded below its historical average P/E multiple despite expected double-digit earnings growth and a 5% free cash flow yield. Following the post-pandemic boom, life science and biotech companies aggressively destocked inventory, while academic research funding faced short-term headwinds. We believe this cyclical slowdown has bottomed and that Thermo's end-market demand is re-accelerating toward historical growth rates. Additionally, the company benefits from the pharma industry's reshoring through its contract development and manufacturing division, which provides high margin sterile manufacturing and packaging services. The position is off to a good start and we see upside from here."
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In another article, we discussed Thermo Fisher Scientific Inc. (NYSE:TMO) and shared Liontrust GF Global Dividend Fund's views on the company. In addition, please check out our hedge fund investor letters Q3 2026 page for more investor letters from hedge funds and other leading investors.
This article is originally published at Insider Monkey.
