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Thermo Fisher Scientific (TMO) Gains But Lags Market: What You Should Know
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Thermo Fisher Scientific (TMO - Free Report) closed the most recent trading day at $651.70, moving +0.99% from the previous trading session. This move lagged the S&P 500's daily gain of 1.02%. Meanwhile, the Dow gained 0.74%, and the Nasdaq, a tech-heavy index, lost 0.4%.
Prior to today's trading, shares of the maker of scientific instrument and laboratory supplies had gained 1.99% over the past month. This has outpaced the Medical sector's gain of 0.37% and the S&P 500's loss of 0.91% in that time.
Thermo Fisher Scientific will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $4.82, down 32.02% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $8.62 billion, down 18.33% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $23.40 per share and revenue of $37.13 billion, which would represent changes of +19.69% and +15.25%, respectively, from the prior 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. 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. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Thermo Fisher Scientific currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Thermo Fisher Scientific is currently trading at a Forward P/E ratio of 27.58. This represents a discount compared to its industry's average Forward P/E of 40.38.
It is also worth noting that TMO currently has a PEG ratio of 1.97. 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. The Medical - Instruments was holding an average PEG ratio of 3.06 at yesterday's closing price.
The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 177, which puts it in the bottom 31% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Thermo Fisher Scientific (TMO) Gains But Lags Market: What You Should Know
Thermo Fisher Scientific (TMO - Free Report) closed the most recent trading day at $651.70, moving +0.99% from the previous trading session. This move lagged the S&P 500's daily gain of 1.02%. Meanwhile, the Dow gained 0.74%, and the Nasdaq, a tech-heavy index, lost 0.4%.
Prior to today's trading, shares of the maker of scientific instrument and laboratory supplies had gained 1.99% over the past month. This has outpaced the Medical sector's gain of 0.37% and the S&P 500's loss of 0.91% in that time.
Thermo Fisher Scientific will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $4.82, down 32.02% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $8.62 billion, down 18.33% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $23.40 per share and revenue of $37.13 billion, which would represent changes of +19.69% and +15.25%, respectively, from the prior 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. 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. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Thermo Fisher Scientific currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Thermo Fisher Scientific is currently trading at a Forward P/E ratio of 27.58. This represents a discount compared to its industry's average Forward P/E of 40.38.
It is also worth noting that TMO currently has a PEG ratio of 1.97. 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. The Medical - Instruments was holding an average PEG ratio of 3.06 at yesterday's closing price.
The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 177, which puts it in the bottom 31% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.