Yahoo Finance Thermo Fisher Scientific (TMO) Gains But Lags Market: What You Should Know
Thermo Fisher Scientific (TMO) closed at $520.14 in the latest trading session, marking a +0.15% move from the prior day. This move lagged the S&P 500's daily gain of 1.45%. Meanwhile, the Dow gained 2.12%, and the Nasdaq, a tech-heavy index, added 5.41%.
Prior to today's trading, shares of the maker of scientific instrument and laboratory supplies had lost 4.81% over the past month. This has lagged the Medical sector's loss of 3.5% and the S&P 500's gain of 1.53% in that time.
Investors will be hoping for strength from Thermo Fisher Scientific as it approaches its next earnings release. In that report, analysts expect Thermo Fisher Scientific to post earnings of $5.43 per share. This would mark a year-over-year decline of 1.45%. Meanwhile, our latest consensus estimate is calling for revenue of $11 billion, up 0.23% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $23.69 per share and revenue of $45.31 billion, which would represent changes of +1.94% and +0.88%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Thermo Fisher Scientific. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% lower. Thermo Fisher Scientific is currently a Zacks Rank #3 (Hold).
Investors should also note Thermo Fisher Scientific's current valuation metrics, including its Forward P/E ratio of 21.92. This valuation marks a discount compared to its industry's average Forward P/E of 29.2.
We can also see that TMO currently has a PEG ratio of 2.58. 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 2.49 at yesterday's closing price.
The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 117, which puts it in the top 47% 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.
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
