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Thermo Fisher Scientific (TMO) Gains But Lags Market: What You Should Know

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In the latest trading session, Thermo Fisher Scientific (TMO - Free Report) closed at $522.58, marking a +0.18% move from the previous day. The stock lagged the S&P 500's daily gain of 1.52%.

Coming into today, shares of the maker of scientific instrument and laboratory supplies had gained 7.87% in the past month. In that same time, the Medical sector lost 4.16%, while the S&P 500 gained 2.41%.

Investors will be hoping for strength from TMO as it approaches its next earnings release, which is expected to be July 28, 2021. The company is expected to report EPS of $5.55, up 42.67% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $8.83 billion, up 27.64% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $22.02 per share and revenue of $35.53 billion. These totals would mark changes of +12.63% and +10.29%, respectively, from last year.

Any recent changes to analyst estimates for TMO should also be noted by investors. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 0.01% higher. TMO is currently a Zacks Rank #3 (Hold).

Investors should also note TMO's current valuation metrics, including its Forward P/E ratio of 23.69. Its industry sports an average Forward P/E of 43.24, so we one might conclude that TMO is trading at a discount comparatively.

Investors should also note that TMO has a PEG ratio of 1.21 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Medical - Instruments was holding an average PEG ratio of 2.97 at yesterday's closing price.

The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 206, which puts it in the bottom 19% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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