Thermo Fisher Scientific Inc. (NYSE:TMO) saw a double-digit share price rise of over 10% in the past couple of months on the NYSE. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, could the stock still be trading at a relatively cheap price? Let’s take a look at Thermo Fisher Scientific’s outlook and value based on the most recent financial data to see if the opportunity still exists.
What's The Opportunity In Thermo Fisher Scientific?
According to my valuation model, Thermo Fisher Scientific seems to be fairly priced at around 10% below my intrinsic value, which means if you buy Thermo Fisher Scientific today, you’d be paying a fair price for it. And if you believe that the stock is really worth $665.80, then there’s not much of an upside to gain from mispricing. Furthermore, Thermo Fisher Scientific’s low beta implies that the stock is less volatile than the wider market.
What does the future of Thermo Fisher Scientific look like?
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Thermo Fisher Scientific's earnings growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. This should lead to robust cash flows, feeding into a higher share value.
What This Means For You
Are you a shareholder? It seems like the market has already priced in TMO’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?
Are you a potential investor? If you’ve been keeping an eye on TMO, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
If you'd like to know more about Thermo Fisher Scientific as a business, it's important to be aware of any risks it's facing. At Simply Wall St, we found 2 warning signs for Thermo Fisher Scientific and we think they deserve your attention.
If you are no longer interested in Thermo Fisher Scientific, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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