Thermo Fisher Scientific (TMO) closed the most recent trading day at $517.83, moving +1.8% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.97%. Elsewhere, the Dow gained 1.88%, while the tech-heavy Nasdaq added 0.25%.
Prior to today's trading, shares of the maker of scientific instrument and laboratory supplies had lost 8.23% over the past month. This has lagged the Medical sector's loss of 6.47% and was narrower than the S&P 500's loss of 9.93% in that time.
Investors will be hoping for strength from Thermo Fisher Scientific as it approaches its next earnings release. On that day, Thermo Fisher Scientific is projected to report earnings of $4.76 per share, which would represent a year-over-year decline of 17.36%. Meanwhile, our latest consensus estimate is calling for revenue of $9.86 billion, up 5.67% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $22.94 per share and revenue of $43.16 billion. These totals would mark changes of -8.71% and +10.07%, respectively, from last 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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 a Zacks Rank #3 (Hold).
Looking at its valuation, Thermo Fisher Scientific is holding a Forward P/E ratio of 22.17. For comparison, its industry has an average Forward P/E of 25.25, which means Thermo Fisher Scientific is trading at a discount to the group.
Investors should also note that TMO has a PEG ratio of 1.58 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 1.76 based on yesterday's closing prices.
The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 168, which puts it in the bottom 34% 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.
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