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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 $551.72, marking a +1.21% move from the previous day. This move lagged the S&P 500's daily gain of 1.83%. Elsewhere, the Dow gained 1.4%, while the tech-heavy Nasdaq added 0.09%.

Heading into today, shares of the maker of scientific instrument and laboratory supplies had lost 6.15% over the past month, outpacing the Medical sector's loss of 6.45% and lagging the S&P 500's loss of 5.51% in that time.

Wall Street will be looking for positivity from Thermo Fisher Scientific as it approaches its next earnings report date. In that report, analysts expect Thermo Fisher Scientific to post earnings of $4.76 per share. This would mark a year-over-year decline of 17.36%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.86 billion, up 5.67% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $22.94 per share and revenue of $43.16 billion, which would represent changes of -8.71% and +10.07%, respectively, from the prior year.

Any recent changes to analyst estimates for Thermo Fisher Scientific should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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 remained stagnant. Thermo Fisher Scientific is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Thermo Fisher Scientific is currently trading at a Forward P/E ratio of 23.76. Its industry sports an average Forward P/E of 28.17, so we one might conclude that Thermo Fisher Scientific is trading at a discount comparatively.

We can also see that TMO currently has a PEG ratio of 1.7. 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. Medical - Instruments stocks are, on average, holding a PEG ratio of 2.01 based on yesterday's closing prices.

The Medical - Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 150, putting it in the bottom 41% 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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