In the latest trading session, Thermo Fisher Scientific (TMO) closed at $608.41, marking a +0.46% move from the previous day. This move outpaced the S&P 500’s daily gain of 0.3%.
Coming into today, shares of the maker of scientific instrument and laboratory supplies had lost 0.17% in the past month. In that same time, the Medical sector lost 1.9%, while the S&P 500 gained 4.28%.
Wall Street will be looking for positivity from TMO as it approaches its next earnings report date. This is expected to be October 27, 2021. In that report, analysts expect TMO to post earnings of $4.67 per share. This would mark a year-over-year decline of 17.05%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.33 billion, down 2.21% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $22.13 per share and revenue of $36.05 billion, which would represent changes of +13.2% and +11.88%, respectively, from the prior 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.37% higher. TMO is currently a Zacks Rank #2 (Buy).
In terms of valuation, TMO is currently trading at a Forward P/E ratio of 27.37. This represents a discount compared to its industry’s average Forward P/E of 48.17.
Also, we should mention that TMO has a PEG ratio of 2.11. 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. Medical – Instruments stocks are, on average, holding a PEG ratio of 3.25 based on yesterday’s closing prices.
The Medical – Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 154, putting it in the bottom 40% 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.
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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Thermo Fisher Scientific Inc. (TMO): Free Stock Analysis Report
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