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Thermo Fisher Scientific (TMO) Outpaces Stock Market Gains: What You Should Know

Thermo Fisher Scientific (TMO) closed at $518.18 in the latest trading session, marking a +0.57% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.12%. At the same time, the Dow added 0.13%, and the tech-heavy Nasdaq lost 4.09%.

Heading into today, shares of the maker of scientific instrument and laboratory supplies had lost 2.74% over the past month, lagging the Medical sector's loss of 2.13% and the S&P 500's gain of 3.98% in that time.

Wall Street will be looking for positivity from Thermo Fisher Scientific as it approaches its next earnings report date. On that day, Thermo Fisher Scientific is projected to report earnings of $5.43 per share, which would represent a year-over-year decline of 1.45%. Our most recent consensus estimate is calling for quarterly revenue of $10.99 billion, up 0.21% from the year-ago period.

TMO's full-year Zacks Consensus Estimates are calling for earnings of $23.69 per share and revenue of $45.3 billion. These results would represent year-over-year changes of +1.94% and +0.86%, respectively.

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Investors might also notice recent changes to analyst estimates for Thermo Fisher Scientific. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. The Zacks Consensus EPS estimate has moved 0.02% lower within the past month. Thermo Fisher Scientific currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Thermo Fisher Scientific currently has a Forward P/E ratio of 21.75. Its industry sports an average Forward P/E of 29.54, so we one might conclude that Thermo Fisher Scientific is trading at a discount comparatively.

It is also worth noting that TMO currently has a PEG ratio of 2.56. 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 industry currently had an average PEG ratio of 2.55 as of yesterday's close.

The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 156, 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report

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