In the latest trading session, Thermo Fisher Scientific (TMO) closed at $515.25, marking a -1.06% move from the previous day. This move lagged the S&P 500's daily gain of 0.62%. Meanwhile, the Dow gained 0.5%, and the Nasdaq, a tech-heavy index, lost 5.66%.
Coming into today, shares of the maker of scientific instrument and laboratory supplies had lost 2.38% in the past month. In that same time, the Medical sector lost 2.88%, while the S&P 500 gained 3.44%.
Thermo Fisher Scientific will be looking to display strength as it nears its next earnings release. In that report, analysts expect Thermo Fisher Scientific to post earnings of $5.43 per share. This would mark a year-over-year decline of 1.45%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.99 billion, up 0.21% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $23.69 per share and revenue of $45.3 billion, which would represent changes of +1.94% and +0.86%, respectively, from the prior year.
Any recent changes to analyst estimates for Thermo Fisher Scientific should also be noted by investors. 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.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.02% lower within the past month. Thermo Fisher Scientific is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Thermo Fisher Scientific has a Forward P/E ratio of 21.99 right now. This represents a discount compared to its industry's average Forward P/E of 29.17.
Investors should also note that TMO has a PEG ratio of 2.59 right now. 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 was holding an average PEG ratio of 2.55 at yesterday's closing price.
The Medical - Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 157, putting it in the bottom 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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