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TMO vs. ISRG: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Medical - Instruments sector have probably already heard of Thermo Fisher Scientific (TMO - Free Report) and Intuitive Surgical, Inc. (ISRG - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Thermo Fisher Scientific has a Zacks Rank of #2 (Buy), while Intuitive Surgical, Inc. has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that TMO is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
TMO currently has a forward P/E ratio of 24.92, while ISRG has a forward P/E of 50.55. We also note that TMO has a PEG ratio of 1.99. 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. ISRG currently has a PEG ratio of 4.24.
Another notable valuation metric for TMO is its P/B ratio of 5.27. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, ISRG has a P/B of 8.48.
These metrics, and several others, help TMO earn a Value grade of B, while ISRG has been given a Value grade of D.
TMO stands above ISRG thanks to its solid earnings outlook, and based on these valuation figures, we also feel that TMO is the superior value option right now.
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TMO vs. ISRG: Which Stock Is the Better Value Option?
Investors interested in stocks from the Medical - Instruments sector have probably already heard of Thermo Fisher Scientific (TMO - Free Report) and Intuitive Surgical, Inc. (ISRG - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Thermo Fisher Scientific has a Zacks Rank of #2 (Buy), while Intuitive Surgical, Inc. has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that TMO is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
TMO currently has a forward P/E ratio of 24.92, while ISRG has a forward P/E of 50.55. We also note that TMO has a PEG ratio of 1.99. 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. ISRG currently has a PEG ratio of 4.24.
Another notable valuation metric for TMO is its P/B ratio of 5.27. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, ISRG has a P/B of 8.48.
These metrics, and several others, help TMO earn a Value grade of B, while ISRG has been given a Value grade of D.
TMO stands above ISRG thanks to its solid earnings outlook, and based on these valuation figures, we also feel that TMO is the superior value option right now.