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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 $465.78 in the latest trading session, marking a +0.88% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.64%. At the same time, the Dow added 0.65%, and the tech-heavy Nasdaq gained 0.14%.

Coming into today, shares of the maker of scientific instrument and laboratory supplies had lost 3.58% in the past month. In that same time, the Medical sector gained 3.2%, while the S&P 500 gained 3.19%.

TMO will be looking to display strength as it nears its next earnings release. On that day, TMO is projected to report earnings of $6.26 per share, which would represent year-over-year growth of 76.34%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.27 billion, up 35.72% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $18.69 per share and revenue of $30.89 billion, which would represent changes of +51.34% and +20.93%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for TMO. These recent revisions tend to reflect the evolving nature of short-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. 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.

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 has moved 4.58% higher within the past month. TMO is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, TMO currently has a Forward P/E ratio of 24.71. This valuation marks a discount compared to its industry's average Forward P/E of 60.13.

We can also see that TMO currently has a PEG ratio of 1.37. 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 3.94 as of yesterday's close.

The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 128, which puts it in the top 50% 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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