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In the latest trading session, Thermo Fisher Scientific (TMO) closed at $583.51, marking a +1.37% move from the previous day. This change outpaced the S&P 500’s 0.83% gain on the day.
Heading into today, shares of the maker of scientific instrument and laboratory supplies had gained 0.53% over the past month, outpacing the Medical sector’s loss of 10.16% and the S&P 500’s loss of 3.68% in that time.
Wall Street will be looking for positivity from TMO as it approaches its next earnings report date. On that day, TMO is projected to report earnings of $4.60 per share, which would represent a year-over-year decline of 18.29%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.27 billion, down 3% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $22.08 per share and revenue of $36.01 billion, which would represent changes of +12.94% and +11.78%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for TMO. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 0.01% higher within the past month. TMO is currently a Zacks Rank #3 (Hold).
Looking at its valuation, TMO is holding a Forward P/E ratio of 26.07. For comparison, its industry has an average Forward P/E of 46.18, which means TMO is trading at a discount to the group.
Meanwhile, TMO’s PEG ratio is currently 2.01. 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 was holding an average PEG ratio of 3.08 at yesterday’s closing price.
The Medical – Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 157, which puts it in the bottom 39% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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