Thermo Fisher Scientific (TMO) closed the most recent trading day at $504.89, moving -0.76% from the previous trading session. This change was narrower than the S&P 500's 0.94% loss on the day. Meanwhile, the Dow lost 0.22%, and the Nasdaq, a tech-heavy index, lost 1.53%.
Prior to today's trading, shares of the maker of scientific instrument and laboratory supplies had lost 3.47% over the past month. This has lagged the Medical sector's loss of 0.55% and the S&P 500's gain of 1.85% in that time.
Wall Street will be looking for positivity from Thermo Fisher Scientific as it approaches its next earnings report date. In that report, analysts expect Thermo Fisher Scientific to post earnings of $5.66 per share. This would mark year-over-year growth of 11.42%. Our most recent consensus estimate is calling for quarterly revenue of $10.65 billion, down 0.29% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $22.37 per share and revenue of $43.54 billion. These totals would mark changes of -3.74% and -3.07%, respectively, from last year.
Any recent changes to analyst estimates for Thermo Fisher Scientific should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 #4 (Sell).
Digging into valuation, Thermo Fisher Scientific currently has a Forward P/E ratio of 22.75. This represents a discount compared to its industry's average Forward P/E of 27.32.
Also, we should mention that TMO has a PEG ratio of 2.4. 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 2.07 at yesterday's closing price.
The Medical - Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 112, putting it in the top 45% 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.
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