Thermo Fisher Scientific (
TMO Quick Quote TMO - Free Report) closed the most recent trading day at $661.25, moving +0.84% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.87%. At the same time, the Dow lost 0.08%, and the tech-heavy Nasdaq lost 0.54%.
Heading into today, shares of the maker of scientific instrument and laboratory supplies had gained 2.89% over the past month, outpacing the Medical sector's loss of 0.67% and the S&P 500's gain of 0.7% in that time.
Thermo Fisher Scientific will be looking to display strength as it nears its next earnings release. On that day, Thermo Fisher Scientific is projected to report earnings of $4.82 per share, which would represent a year-over-year decline of 32.02%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.62 billion, down 18.33% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $23.40 per share and revenue of $37.13 billion. These totals would mark changes of +19.69% and +15.25%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Thermo Fisher Scientific. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 remained stagnant within the past month. Thermo Fisher Scientific is currently a Zacks Rank #2 (Buy).
Looking at its valuation, Thermo Fisher Scientific is holding a Forward P/E ratio of 28.02. For comparison, its industry has an average Forward P/E of 40.62, which means Thermo Fisher Scientific is trading at a discount to the group.
Investors should also note that TMO has a PEG ratio of 2 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Medical - Instruments stocks are, on average, holding a PEG ratio of 3 based on yesterday's closing prices.
The Medical - Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 179, putting it in the bottom 30% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.