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Thermo Fisher Scientific (TMO) Dips More Than Broader Markets: What You Should Know

Thermo Fisher Scientific (TMO) closed at $575.32 in the latest trading session, marking a -0.93% move from the prior day. This change lagged the S&P 500's 0.02% loss on the day. At the same time, the Dow added 0.03%, and the tech-heavy Nasdaq gained 5.44%.

Heading into today, shares of the maker of scientific instrument and laboratory supplies had gained 6.47% over the past month, outpacing the Medical sector's loss of 0.87% and the S&P 500's gain of 4.57% in that time.

Thermo Fisher Scientific will be looking to display strength as it nears 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. Our most recent consensus estimate is calling for quarterly revenue of $10.36 billion, down 3.22% from the year-ago period.

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

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Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.12% higher. Thermo Fisher Scientific is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Thermo Fisher Scientific is currently trading at a Forward P/E ratio of 25.33. Its industry sports an average Forward P/E of 29.07, so we one might conclude that Thermo Fisher Scientific is trading at a discount comparatively.

It is also worth noting that TMO currently has a PEG ratio of 2.03. 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 industry currently had an average PEG ratio of 2.27 as of yesterday's close.

The Medical - Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 105, putting it in the top 42% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

To follow TMO in the coming trading sessions, be sure to utilize Zacks.com.

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Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report

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