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Thermo Fisher Scientific (TMO) Gains As Market Dips: What You Should Know

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Zacks Equity Research
·3 min read
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Thermo Fisher Scientific (TMO) closed at $471.39 in the latest trading session, marking a +0.57% move from the prior day. This change outpaced the S&P 500's 0.13% loss on the day. Meanwhile, the Dow gained 0.16%, and the Nasdaq, a tech-heavy index, lost 0.23%.

Heading into today, shares of the maker of scientific instrument and laboratory supplies had lost 3.66% over the past month, lagging the Medical sector's gain of 3.63% and the S&P 500's gain of 3.58% in that time.

Wall Street will be looking for positivity from TMO as it approaches its next earnings report date. On that day, TMO is projected to report earnings of $6.16 per share, which would represent year-over-year growth of 73.52%. Our most recent consensus estimate is calling for quarterly revenue of $9.16 billion, up 34.09% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $18.60 per share and revenue of $30.79 billion, which would represent changes of +50.61% and +20.55%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for TMO. Recent revisions tend to reflect the latest near-term business trends. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection has moved 4.68% higher. TMO currently has a Zacks Rank of #2 (Buy).

In terms of valuation, TMO is currently trading at a Forward P/E ratio of 25.2. This represents a discount compared to its industry's average Forward P/E of 57.6.

Meanwhile, TMO's PEG ratio is currently 1.4. 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. Medical - Instruments stocks are, on average, holding a PEG ratio of 3.99 based on yesterday's closing prices.

The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 166, which puts it in the bottom 35% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.


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