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Thermo Fisher Scientific (TMO) Gains As Market Dips: What You Should Know

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Thermo Fisher Scientific (TMO - Free Report) closed at $620.40 in the latest trading session, marking a +0.3% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.1%. Elsewhere, the Dow lost 0.47%, while the tech-heavy Nasdaq lost 0.47%.

Coming into today, shares of the maker of scientific instrument and laboratory supplies had lost 3.08% in the past month. In that same time, the Medical sector gained 1.09%, while the S&P 500 gained 3.67%.

Thermo Fisher Scientific will be looking to display strength as it nears its next earnings release, which is expected to be February 2, 2022. On that day, Thermo Fisher Scientific is projected to report earnings of $4.82 per share, which would represent a year-over-year decline of 32.02%. Meanwhile, our latest consensus estimate is calling for revenue of $8.62 billion, down 18.33% from the prior-year quarter.

It is also important to note the recent changes to analyst estimates for Thermo Fisher Scientific. Recent revisions tend to reflect the latest near-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. 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. The Zacks Consensus EPS estimate has moved 0.26% higher within the past month. 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 29.02. This valuation marks a discount compared to its industry's average Forward P/E of 48.09.

Investors should also note that TMO has a PEG ratio of 2.07 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. The Medical - Instruments was holding an average PEG ratio of 2.56 at yesterday's closing price.

The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 159, which puts it in the bottom 38% 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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