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Thermo Fisher Scientific (TMO) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Thermo Fisher Scientific (TMO - Free Report) closed at $567.23, marking a -0.73% move from the previous day. This move lagged the S&P 500's daily loss of 0.61%. At the same time, the Dow lost 0.42%, and the tech-heavy Nasdaq gained 0.17%.

Prior to today's trading, shares of the maker of scientific instrument and laboratory supplies had gained 4.63% over the past month. This has lagged the Medical sector's gain of 5.48% and outpaced the S&P 500's gain of 0.89% in that time.

Investors will be hoping for strength from Thermo Fisher Scientific as it approaches its next earnings release. On that day, Thermo Fisher Scientific is projected to report earnings of $5.20 per share, which would represent a year-over-year decline of 20.49%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.35 billion, down 3.25% from the year-ago period.

TMO's full-year Zacks Consensus Estimates are calling for earnings of $23.04 per share and revenue of $43.82 billion. These results would represent year-over-year changes of -8.32% and +11.75%, respectively.

It is also important to note the recent changes to analyst estimates for Thermo Fisher Scientific. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% higher. Thermo Fisher Scientific currently has a Zacks Rank of #3 (Hold).

Investors should also note Thermo Fisher Scientific's current valuation metrics, including its Forward P/E ratio of 24.8. This valuation marks a discount compared to its industry's average Forward P/E of 29.41.

It is also worth noting that TMO currently has a PEG ratio of 1.98. 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. TMO's industry had an average PEG ratio of 2.35 as of yesterday's close.

The Medical - Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 90, putting it in the top 36% 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.

To follow TMO in the coming trading sessions, be sure to utilize Zacks.com.


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