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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 $506.17 in the latest trading session, marking a +0.63% move from the prior day. This move outpaced the S&P 500's daily loss of 0.27%. At the same time, the Dow lost 0.47%, and the tech-heavy Nasdaq gained 0.14%.

Coming into today, shares of the maker of scientific instrument and laboratory supplies had lost 9.71% in the past month. In that same time, the Medical sector lost 3.01%, while the S&P 500 lost 2.86%.

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 $5.67 per share, which would represent year-over-year growth of 11.61%. Meanwhile, our latest consensus estimate is calling for revenue of $10.65 billion, down 0.29% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $22.37 per share and revenue of $43.54 billion, which would represent changes of -3.74% and -3.07%, respectively, from the prior year.

Any recent changes to analyst estimates for Thermo Fisher Scientific should also be noted by investors. 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. 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 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. Within the past 30 days, our consensus EPS projection remained stagnant. Thermo Fisher Scientific is holding a Zacks Rank of #4 (Sell) right now.

Valuation is also important, so investors should note that Thermo Fisher Scientific has a Forward P/E ratio of 22.49 right now. Its industry sports an average Forward P/E of 25.62, so we one might conclude that Thermo Fisher Scientific is trading at a discount comparatively.

It is also worth noting that TMO currently has a PEG ratio of 2.37. 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 industry currently had an average PEG ratio of 2.07 as of yesterday's close.

The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 104, which puts it in the top 42% 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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