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

·3 min read

Thermo Fisher Scientific (TMO) closed at $550.75 in the latest trading session, marking a +1% move from the prior day. This move outpaced the S&P 500's daily gain of 0.3%. At the same time, the Dow added 0.46%, and the tech-heavy Nasdaq lost 0.09%.

Coming into today, shares of the maker of scientific instrument and laboratory supplies had lost 7.26% in the past month. In that same time, the Medical sector lost 5.76%, while the S&P 500 lost 4.13%.

Thermo Fisher Scientific will be looking to display strength as it nears its next earnings release. In that report, analysts expect Thermo Fisher Scientific to post earnings of $4.76 per share. This would mark a year-over-year decline of 17.36%. Meanwhile, our latest consensus estimate is calling for revenue of $9.86 billion, up 5.67% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $22.94 per share and revenue of $43.16 billion, which would represent changes of -8.71% and +10.07%, 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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Thermo Fisher Scientific is currently a Zacks Rank #3 (Hold).

In terms of valuation, Thermo Fisher Scientific is currently trading at a Forward P/E ratio of 23.77. For comparison, its industry has an average Forward P/E of 28.33, which means Thermo Fisher Scientific is trading at a discount to the group.

It is also worth noting that TMO currently has a PEG ratio of 1.7. 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 2.07 as of yesterday's close.

The Medical - Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 149, putting it in the bottom 41% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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