Back to top

Image: Bigstock

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

Read MoreHide Full Article

Thermo Fisher Scientific (TMO - Free Report) closed at $583.86 in the latest trading session, marking a +0.66% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.76%. Meanwhile, the Dow lost 0.76%, and the Nasdaq, a tech-heavy index, lost 10.92%.

Heading into today, shares of the maker of scientific instrument and laboratory supplies had gained 7.44% over the past month, outpacing the Medical sector's loss of 0.24% and the S&P 500's gain of 2.18% in that time.

Investors will be hoping for strength from Thermo Fisher Scientific as it approaches its next earnings release, which is expected to be February 1, 2023. The company is expected to report EPS of $5.19, down 20.64% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.36 billion, down 3.22% from the year-ago period.

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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.24% higher. Thermo Fisher Scientific is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Thermo Fisher Scientific has a Forward P/E ratio of 25.27 right now. For comparison, its industry has an average Forward P/E of 28.65, which means Thermo Fisher Scientific is trading at a discount to the group.

It is also worth noting that TMO currently has a PEG ratio of 2.02. 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. The Medical - Instruments was holding an average PEG ratio of 2.22 at yesterday's closing price.

The Medical - Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 90, putting it in the top 36% 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Thermo Fisher Scientific Inc. (TMO) - free report >>

Published in