Thermo Fisher Scientific (TMO) Gains But Lags Market: What You Should Know

In the latest trading session, Thermo Fisher Scientific (TMO) closed at $446.87, marking a +1.23% move from the previous day. This change lagged the S&P 500's 1.95% gain on the day. Elsewhere, the Dow gained 1.85%, while the tech-heavy Nasdaq added 1.55%.

Heading into today, shares of the maker of scientific instrument and laboratory supplies had lost 9.71% over the past month, lagging the Medical sector's loss of 6.76% and the S&P 500's loss of 2.45% in that time.

TMO will be looking to display strength as it nears its next earnings release. In that report, analysts expect TMO to post earnings of $6.68 per share. This would mark year-over-year growth of 127.21%. Meanwhile, our latest consensus estimate is calling for revenue of $9.7 billion, up 55.7% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $21.73 per share and revenue of $35.16 billion. These totals would mark changes of +11.15% and +9.13%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for TMO. 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. 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, 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 has moved 0.03% lower. TMO currently has a Zacks Rank of #3 (Hold).

Investors should also note TMO's current valuation metrics, including its Forward P/E ratio of 20.31. Its industry sports an average Forward P/E of 39.14, so we one might conclude that TMO is trading at a discount comparatively.

Meanwhile, TMO's PEG ratio is currently 1.04. 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. TMO's industry had an average PEG ratio of 3.09 as of yesterday's close.

The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 174, which puts it in the bottom 32% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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