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

Thermo Fisher Scientific (TMO) closed at $577.35 in the latest trading session, marking a +0.66% move from the prior day. This move lagged the S&P 500's daily gain of 1.71%.

Heading into today, shares of the maker of scientific instrument and laboratory supplies had gained 1.88% over the past month, outpacing the Medical sector's loss of 5.62% and the S&P 500's loss of 2.25% in that time.

Investors will be hoping for strength from TMO as it approaches its next earnings release, which is expected to be October 27, 2021. In that report, analysts expect TMO to post earnings of $4.60 per share. This would mark a year-over-year decline of 18.29%. Meanwhile, our latest consensus estimate is calling for revenue of $8.27 billion, down 3% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $22.08 per share and revenue of $36.01 billion. These totals would mark changes of +12.94% and +11.78%, respectively, from last year.

Investors should also note any 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. 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 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. The Zacks Consensus EPS estimate has moved 0.01% higher within the past month. TMO is holding a Zacks Rank of #2 (Buy) right now.

Investors should also note TMO's current valuation metrics, including its Forward P/E ratio of 25.98. For comparison, its industry has an average Forward P/E of 48.2, which means TMO is trading at a discount to the group.

Meanwhile, TMO's PEG ratio is currently 2. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Medical - Instruments stocks are, on average, holding a PEG ratio of 3.06 based on yesterday's closing prices.

The Medical - Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 155, putting it in the bottom 39% 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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