Thermo Fisher Scientific (TMO) closed at $519.22 in the latest trading session, marking a +1.11% move from the prior day. This move outpaced the S&P 500's daily loss of 0.13%. At the same time, the Dow lost 0.15%, and the tech-heavy Nasdaq gained 0.14%.
Heading into today, shares of the maker of scientific instrument and laboratory supplies had lost 6.43% over the past month, lagging the Medical sector's loss of 5.23% and the S&P 500's loss of 3.32% in that time.
Wall Street will be looking for positivity from Thermo Fisher Scientific as it approaches its next earnings report date. The company is expected to report EPS of $4.93, down 11.96% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $9.86 billion, up 6.37% from the year-ago period.
TMO's full-year Zacks Consensus Estimates are calling for earnings of $22.70 per share and revenue of $42.49 billion. These results would represent year-over-year changes of -9.67% and +8.35%, respectively.
It is also important to note the recent changes to analyst estimates for Thermo Fisher Scientific. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Thermo Fisher Scientific currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Thermo Fisher Scientific is currently trading at a Forward P/E ratio of 22.62. This represents a discount compared to its industry's average Forward P/E of 25.85.
It is also worth noting that TMO currently has a PEG ratio of 1.74. 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 industry currently had an average PEG ratio of 1.88 as of yesterday's close.
The Medical - Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 176, putting 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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