In the latest trading session, Thermo Fisher Scientific (TMO - Free Report) closed at $419.73, marking a +0.34% move from the previous day. This move outpaced the S&P 500's daily loss of 1.76%. Elsewhere, the Dow lost 1.45%, while the tech-heavy Nasdaq lost 1.99%.
Prior to today's trading, shares of the maker of scientific instrument and laboratory supplies had gained 0.52% over the past month. This has outpaced the Medical sector's loss of 0.92% and lagged the S&P 500's gain of 1.56% in that time.
TMO will be looking to display strength as it nears its next earnings release. On that day, TMO is projected to report earnings of $3.97 per share, which would represent year-over-year growth of 35.03%. Meanwhile, our latest consensus estimate is calling for revenue of $7.21 billion, up 14.95% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $15.19 per share and revenue of $28.04 billion. These totals would mark changes of +23% and +9.77%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for TMO. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate has moved 1.57% higher. TMO is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that TMO has a Forward P/E ratio of 27.54 right now. This valuation marks a discount compared to its industry's average Forward P/E of 49.37.
Also, we should mention that TMO has a PEG ratio of 1.84. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Medical - Instruments stocks are, on average, holding a PEG ratio of 3.92 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 175, which puts it in the bottom 32% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.