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Thermo Fisher Scientific (TMO) Gains But Lags Market: What You Should Know

In the latest trading session, Thermo Fisher Scientific (TMO) closed at $555.19, marking a +0.16% move from the previous day. This move lagged the S&P 500's daily gain of 0.3%. Elsewhere, the Dow gained 0.24%, while the tech-heavy Nasdaq added 0.34%.

Coming into today, shares of the maker of scientific instrument and laboratory supplies had gained 1.08% in the past month. In that same time, the Medical sector lost 2.43%, while the S&P 500 lost 1.21%.

Investors will be hoping for strength from Thermo Fisher Scientific as it approaches its next earnings release. The company is expected to report EPS of $4.95, down 31.72% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $10.57 billion, down 10.58% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $23.72 per share and revenue of $45.34 billion, which would represent changes of +2.07% and +0.95%, respectively, from the prior year.

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It is also important to note the recent changes to analyst estimates for Thermo Fisher Scientific. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Thermo Fisher Scientific currently has a Zacks Rank of #2 (Buy).

Digging into valuation, Thermo Fisher Scientific currently has a Forward P/E ratio of 23.37. This represents a discount compared to its industry's average Forward P/E of 24.6.

We can also see that TMO currently has a PEG ratio of 1.87. 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 was holding an average PEG ratio of 2.05 at yesterday's closing price.

The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 91, which puts it in the top 37% 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

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