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Thermo Fisher at a 52-Week High: What's Driving the Stock?
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Share price of Thermo Fisher Scientific Inc. (TMO - Free Report) , headquartered in Waltham, MA, scaled a new 52-week high of $177.99 on Jul 7, eventually closing a slower at $177.49. The company has witnessed a consistent rally in its share price, gaining around 6.03% on better-than-expected results for the first quarter of 2017 on Apr 26. Along with the strong fundamentals, the raised full-year 2017 guidance bolstered investors’ confidence in the stock.
Average volume of shares traded in the last one year was remarkable at approximately 1,401.87K. The stock has a market cap of $69.44 billion.
Comparison with Broader Industry
For the majority of the last three months, the company’s share price has considerably outperformed the Zacks categorized Medical - Products sub-industry. The stock has rallied 16.1% during this period, outshining the sub-industry’s rise of 10.8%. The company has also outperformed the S&P 500’s 3.2% gain.
Taking the stable stock performance into consideration, we expect Thermo Fisher to scale higher in the coming quarters.
Estimate Revision Trend
This Zacks Rank #3 (Hold) company’s estimate revision trend for the current year is favorable. In the last 60 days, five estimates have moved up with no revision in the opposite direction. The magnitude of estimate revision increased around 0.65% to $9.22 per share. The company reported a four-quarter positive average earnings surprise of 2.3% and an earnings surprise of 2.97% in the last reported first quarter of 2017.
Growth Catalysts
Thermo Fisher’s continuous efforts to drive growth inorganically through acquisition activities have been generating a lot of enthusiasm among the investors. In this context, the company announced its agreement in May 2017 to acquire Netherlands- based Patheon N.V., a global provider of high-quality drug solutions to pharmaceutical and biopharma sectors.
Thermo Fisher expects to derive a lot of synergies through this buyout that will help expand its biopharma offerings in Europe. The combination is expected to strengthen Thermo Fisher’s foothold in the Pharmaceutical and Biotech markets by adding highly complementary services to its portfolio.
Also, the acquisition of FEI, which has already started generating synergies and contributing largely to the company’s analytical instruments portfolio, has boosted market optimism about the stock.
The market is also upbeat about the company’s focus to gain traction in the high-potential emerging geographies. In China, Thermo Fisher has been delivering solid results in markets like biopharma, healthcare and envirionment. In order to meet the rising demand for clinical trials in South Korea, the company recently launched a BioPharma services unit. Moreover, Thermo Fisher is continuously working to cash in on the opportunities in BioPharma, healthcare and food safety markets of India.
Zacks Rank & Key Picks
Thermo Fisher currently carries a Zacks Rank #3. A few better-ranked medical stocks are Inogen, Inc. (INGN - Free Report) , Varian Medical Systems, Inc. and Abbott Laboratories (ABT - Free Report) . Notably, Inogen sports a Zacks Rank #1 (Strong Buy), while Varian Medical and Abbott Laboratories carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Inogen has a long-term expected earnings growth rate of 17.5%. The stock has gained around 23.5% in the last three months.
Varian Medical has a long-term expected earnings growth rate of 8%. The stock has rallied around 15.1% in the last three months.
Abbott Laboratories has an expected long-term adjusted earnings growth of 10.84%. The stock has added roughly 11.2% in the last three months.
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Image: Bigstock
Thermo Fisher at a 52-Week High: What's Driving the Stock?
Share price of Thermo Fisher Scientific Inc. (TMO - Free Report) , headquartered in Waltham, MA, scaled a new 52-week high of $177.99 on Jul 7, eventually closing a slower at $177.49. The company has witnessed a consistent rally in its share price, gaining around 6.03% on better-than-expected results for the first quarter of 2017 on Apr 26. Along with the strong fundamentals, the raised full-year 2017 guidance bolstered investors’ confidence in the stock.
Average volume of shares traded in the last one year was remarkable at approximately 1,401.87K. The stock has a market cap of $69.44 billion.
Comparison with Broader Industry
For the majority of the last three months, the company’s share price has considerably outperformed the Zacks categorized Medical - Products sub-industry. The stock has rallied 16.1% during this period, outshining the sub-industry’s rise of 10.8%. The company has also outperformed the S&P 500’s 3.2% gain.
Taking the stable stock performance into consideration, we expect Thermo Fisher to scale higher in the coming quarters.
Estimate Revision Trend
This Zacks Rank #3 (Hold) company’s estimate revision trend for the current year is favorable. In the last 60 days, five estimates have moved up with no revision in the opposite direction. The magnitude of estimate revision increased around 0.65% to $9.22 per share. The company reported a four-quarter positive average earnings surprise of 2.3% and an earnings surprise of 2.97% in the last reported first quarter of 2017.
Growth Catalysts
Thermo Fisher’s continuous efforts to drive growth inorganically through acquisition activities have been generating a lot of enthusiasm among the investors. In this context, the company announced its agreement in May 2017 to acquire Netherlands- based Patheon N.V., a global provider of high-quality drug solutions to pharmaceutical and biopharma sectors.
Thermo Fisher expects to derive a lot of synergies through this buyout that will help expand its biopharma offerings in Europe. The combination is expected to strengthen Thermo Fisher’s foothold in the Pharmaceutical and Biotech markets by adding highly complementary services to its portfolio.
Also, the acquisition of FEI, which has already started generating synergies and contributing largely to the company’s analytical instruments portfolio, has boosted market optimism about the stock.
The market is also upbeat about the company’s focus to gain traction in the high-potential emerging geographies. In China, Thermo Fisher has been delivering solid results in markets like biopharma, healthcare and envirionment. In order to meet the rising demand for clinical trials in South Korea, the company recently launched a BioPharma services unit. Moreover, Thermo Fisher is continuously working to cash in on the opportunities in BioPharma, healthcare and food safety markets of India.
Zacks Rank & Key Picks
Thermo Fisher currently carries a Zacks Rank #3. A few better-ranked medical stocks are Inogen, Inc. (INGN - Free Report) , Varian Medical Systems, Inc. and Abbott Laboratories (ABT - Free Report) . Notably, Inogen sports a Zacks Rank #1 (Strong Buy), while Varian Medical and Abbott Laboratories carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Inogen has a long-term expected earnings growth rate of 17.5%. The stock has gained around 23.5% in the last three months.
Varian Medical has a long-term expected earnings growth rate of 8%. The stock has rallied around 15.1% in the last three months.
Abbott Laboratories has an expected long-term adjusted earnings growth of 10.84%. The stock has added roughly 11.2% in the last three months.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>