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Thermo Fisher Scientific (TMO) Outpaces Stock Market Gains: What You Should Know

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Thermo Fisher Scientific (TMO) closed the most recent trading day at $561.72, moving +1.22% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.03%.

Prior to today's trading, shares of the maker of scientific instrument and laboratory supplies had gained 3.34% over the past month. This has outpaced the Medical sector's gain of 2.3% and the S&P 500's gain of 3.02% in that time.

Investors will be hoping for strength from TMO as it approaches its next earnings release. In that report, analysts expect TMO to post earnings of $4.59 per share. This would mark a year-over-year decline of 18.47%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.22 billion, down 3.53% from the year-ago period.

TMO's full-year Zacks Consensus Estimates are calling for earnings of $22.07 per share and revenue of $35.98 billion. These results would represent year-over-year changes of +12.89% and +11.66%, respectively.

Investors might also notice recent changes to analyst estimates for TMO. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. TMO is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, TMO is holding a Forward P/E ratio of 25.15. This represents a discount compared to its industry's average Forward P/E of 44.7.

Meanwhile, TMO's PEG ratio is currently 1.29. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TMO's industry had an average PEG ratio of 3.29 as of yesterday's close.

The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 174, which puts it in the bottom 32% 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.

To follow TMO in the coming trading sessions, be sure to utilize Zacks.com.

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