Thermo Fisher Scientific (TMO) Stock Falls Amid Market Uptick: What Investors Need to Know
Thermo Fisher Scientific (TMO) closed at $580.05 in the latest trading session, marking a -0.7% move from the prior day. This change lagged the S&P 500's daily gain of 0.63%. On the other hand, the Dow registered a gain of 0.2%, and the technology-centric Nasdaq increased by 0.82%.
The maker of scientific instrument and laboratory supplies's shares have seen an increase of 6.63% over the last month, surpassing the Medical sector's gain of 0.91% and the S&P 500's gain of 1.76%.
Investors will be eagerly watching for the performance of Thermo Fisher Scientific in its upcoming earnings disclosure. On that day, Thermo Fisher Scientific is projected to report earnings of $4.71 per share, which would represent a year-over-year decline of 6.36%. In the meantime, our current consensus estimate forecasts the revenue to be $10.14 billion, indicating a 5.28% decline compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $21.52 per share and revenue of $42.74 billion, indicating changes of -0.14% and -0.28%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Thermo Fisher Scientific. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. At present, Thermo Fisher Scientific boasts a Zacks Rank of #3 (Hold).
Investors should also note Thermo Fisher Scientific's current valuation metrics, including its Forward P/E ratio of 27.14. This valuation marks a discount compared to its industry's average Forward P/E of 27.51.
Investors should also note that TMO has a PEG ratio of 2.45 right now. 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. As the market closed yesterday, the Medical - Instruments industry was having an average PEG ratio of 2.24.
The Medical - Instruments industry is part of the Medical sector. With its current Zacks Industry Rank of 54, this industry ranks in the top 22% of all industries, numbering over 250.
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.
You can find more information on all of these metrics, and much 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
