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

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In the latest trading session, Thermo Fisher Scientific (TMO - Free Report) closed at $503.14, marking a +1.25% move from the previous day. This move outpaced the S&P 500's daily loss of 0.72%. Meanwhile, the Dow lost 0.57%, and the Nasdaq, a tech-heavy index, lost 0.87%.

Coming into today, shares of the maker of scientific instrument and laboratory supplies had gained 6.88% in the past month. In that same time, the Medical sector gained 3.28%, while the S&P 500 gained 4.69%.

Wall Street will be looking for positivity from TMO as it approaches its next earnings report date. This is expected to be February 1, 2021. On that day, TMO is projected to report earnings of $6.36 per share, which would represent year-over-year growth of 79.15%.

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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. The Zacks Consensus EPS estimate has moved 0.53% higher within the past month. TMO is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, TMO is currently trading at a Forward P/E ratio of 24.89. For comparison, its industry has an average Forward P/E of 45.5, which means TMO is trading at a discount to the group.

We can also see that TMO currently has a PEG ratio of 1.38. 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. The Medical - Instruments industry currently had an average PEG ratio of 3.89 as of yesterday's close.

The Medical - Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 171, putting it in the bottom 33% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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