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Thermo Fisher Scientific (TMO) Outpaces Stock Market Gains: What You Should Know

·3-min read

Thermo Fisher Scientific (TMO) closed at $625.20 in the latest trading session, marking a +0.76% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.28%. At the same time, the Dow added 0.11%, and the tech-heavy Nasdaq gained 0.14%.

Prior to today's trading, shares of the maker of scientific instrument and laboratory supplies had lost 1.84% over the past month. This has lagged the Medical sector's loss of 1.05% and the S&P 500's gain of 0.12% 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 2, 2022. The company is expected to report EPS of $5.22, down 26.38% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $9.03 billion, down 14.44% from the year-ago period.

Any recent changes to analyst estimates for Thermo Fisher Scientific should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.76% higher. Thermo Fisher Scientific currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Thermo Fisher Scientific is currently trading at a Forward P/E ratio of 28.68. This represents a discount compared to its industry's average Forward P/E of 42.61.

Investors should also note that TMO has a PEG ratio of 2.05 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. TMO's industry had an average PEG ratio of 2.61 as of yesterday's close.

The Medical - Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 172, putting it in the bottom 33% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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