Thermo Fisher Scientific (TMO) Outpaces Stock Market Gains: What You Should Know
Thermo Fisher Scientific (TMO) closed at $562.97 in the latest trading session, marking a +1.41% move from the prior day. This move outpaced the S&P 500's daily gain of 0.57%. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq added 0.33%.
Heading into today, shares of the maker of scientific instrument and laboratory supplies had gained 3.09% over the past month, outpacing the Medical sector's gain of 1.75% and the S&P 500's gain of 1.72% in that time.
Thermo Fisher Scientific will be looking to display strength as it nears its next earnings release. On that day, Thermo Fisher Scientific is projected to report earnings of $4.95 per share, which would represent a year-over-year decline of 31.72%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.57 billion, down 10.58% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $23.72 per share and revenue of $45.34 billion, which would represent changes of +2.07% and +0.95%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Thermo Fisher Scientific. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Thermo Fisher Scientific is currently a Zacks Rank #2 (Buy).
In terms of valuation, Thermo Fisher Scientific is currently trading at a Forward P/E ratio of 23.41. This valuation marks a discount compared to its industry's average Forward P/E of 25.19.
Investors should also note that TMO has a PEG ratio of 1.87 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Medical - Instruments was holding an average PEG ratio of 2.12 at yesterday's closing price.
The Medical - Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 83, putting it in the top 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report
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