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

In the latest trading session, Thermo Fisher Scientific (TMO – Free Report) closed at $650.70, marking a -0.15% move from the previous day. This change lagged the S&P 500’s daily gain of 0.62%. Meanwhile, the Dow gained 0.55%, and the Nasdaq, a tech-heavy index, lost 0.03%.

Heading into today, shares of the maker of scientific instrument and laboratory supplies had gained 2.95% over the past month, outpacing the Medical sector’s gain of 2.26% and the S&P 500’s gain of 0.39% in that time.

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 $4.82 per share. This would mark a year-over-year decline of 32.02%. Meanwhile, our latest consensus estimate is calling for revenue of $8.62 billion, down 18.33% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $23.40 per share and revenue of $37.13 billion, which would represent changes of +19.69% and +15.25%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Thermo Fisher Scientific. These recent revisions tend to reflect the evolving nature of short-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. 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.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. Thermo Fisher Scientific is holding a Zacks Rank of #2 (Buy) right now.

In terms of valuation, Thermo Fisher Scientific is currently trading at a Forward P/E ratio of 27.85. This represents a discount compared to its industry’s average Forward P/E of 41.3.

Investors should also note that TMO has a PEG ratio of 1.99 right now. 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. Medical – Instruments stocks are, on average, holding a PEG ratio of 2.54 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 180, which puts it in the bottom 30% 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.

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