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Thermo Fisher Scientific (TMO) Outpaces Stock Market Gains: What You Should Know
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Thermo Fisher Scientific (TMO - Free Report) closed at $662.73 in the latest trading session, marking a +1.12% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.14%. Meanwhile, the Dow gained 0.25%, and the Nasdaq, a tech-heavy index, lost 0.34%.
Coming into today, shares of the maker of scientific instrument and laboratory supplies had gained 3.56% in the past month. In that same time, the Medical sector gained 3.52%, while the S&P 500 gained 4.32%.
Investors will be hoping for strength from Thermo Fisher Scientific as it approaches its next earnings release. In that report, analysts expect Thermo Fisher Scientific to post earnings of $4.82 per share. This would mark 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.
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.
Investors should also note any recent changes to analyst estimates for Thermo Fisher Scientific. Recent revisions tend to reflect the latest near-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Thermo Fisher Scientific is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, Thermo Fisher Scientific currently has a Forward P/E ratio of 28.01. For comparison, its industry has an average Forward P/E of 42.6, which means Thermo Fisher Scientific is trading at a discount to the group.
Also, we should mention that TMO has a PEG ratio of 2. 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 2.59 at yesterday's closing price.
The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 179, which puts it in the bottom 30% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow TMO in the coming trading sessions, be sure to utilize Zacks.com.
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Thermo Fisher Scientific (TMO) Outpaces Stock Market Gains: What You Should Know
Thermo Fisher Scientific (TMO - Free Report) closed at $662.73 in the latest trading session, marking a +1.12% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.14%. Meanwhile, the Dow gained 0.25%, and the Nasdaq, a tech-heavy index, lost 0.34%.
Coming into today, shares of the maker of scientific instrument and laboratory supplies had gained 3.56% in the past month. In that same time, the Medical sector gained 3.52%, while the S&P 500 gained 4.32%.
Investors will be hoping for strength from Thermo Fisher Scientific as it approaches its next earnings release. In that report, analysts expect Thermo Fisher Scientific to post earnings of $4.82 per share. This would mark 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.
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.
Investors should also note any recent changes to analyst estimates for Thermo Fisher Scientific. Recent revisions tend to reflect the latest near-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Thermo Fisher Scientific is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, Thermo Fisher Scientific currently has a Forward P/E ratio of 28.01. For comparison, its industry has an average Forward P/E of 42.6, which means Thermo Fisher Scientific is trading at a discount to the group.
Also, we should mention that TMO has a PEG ratio of 2. 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 2.59 at yesterday's closing price.
The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 179, which puts it in the bottom 30% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow TMO in the coming trading sessions, be sure to utilize Zacks.com.