Thermo Fisher Scientific (TMO) Gains But Lags Market: What You Should Know
Thermo Fisher Scientific (TMO) closed at $573.69 in the latest trading session, marking a +0.42% move from the prior day. The stock lagged the S&P 500's daily gain of 1.43%. Elsewhere, the Dow gained 1.02%, while the tech-heavy Nasdaq added 0.32%.
Heading into today, shares of the maker of scientific instrument and laboratory supplies had gained 8.08% over the past month, outpacing the Medical sector's gain of 5.94% and the S&P 500's gain of 5.65% in that time.
Thermo Fisher Scientific will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $6.20, down 14.01% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $10.63 billion, up 7.32% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $22.52 per share and revenue of $42.15 billion. These totals would mark changes of -10.39% and +7.48%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Thermo Fisher Scientific. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Thermo Fisher Scientific currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Thermo Fisher Scientific currently has a Forward P/E ratio of 25.37. This represents a discount compared to its industry's average Forward P/E of 33.64.
Meanwhile, TMO's PEG ratio is currently 1.81. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TMO's industry had an average PEG ratio of 2.09 as of yesterday's close.
The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 170, which puts it in the bottom 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
