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

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Thermo Fisher Scientific (TMO - Free Report) closed at $464.51 in the latest trading session, marking a +1.47% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.58%. Elsewhere, the Dow gained 0.49%, while the tech-heavy Nasdaq added 0.84%.

Heading into today, shares of the maker of scientific instrument and laboratory supplies had gained 0.79% over the past month, lagging the Medical sector's gain of 2.45% and the S&P 500's gain of 2.12% in that time.

TMO will be looking to display strength as it nears its next earnings release. In that report, analysts expect TMO to post earnings of $6.16 per share. This would mark year-over-year growth of 73.52%. Meanwhile, our latest consensus estimate is calling for revenue of $9.16 billion, up 34.09% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $18.69 per share and revenue of $30.79 billion, which would represent changes of +51.34% and +20.55%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for TMO. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 4.61% higher. TMO is holding a Zacks Rank of #2 (Buy) right now.

In terms of valuation, TMO is currently trading at a Forward P/E ratio of 24.5. For comparison, its industry has an average Forward P/E of 56.6, which means TMO is trading at a discount to the group.

We can also see that TMO currently has a PEG ratio of 1.36. 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. TMO's industry had an average PEG ratio of 3.9 as of yesterday's close.

The Medical - Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 162, putting it in the bottom 37% 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.

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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