Thermo Fisher Scientific: A Strong Value Stock with High Zacks Style Scores and Valuation Metrics
Investing in the stock market can be a challenging endeavor, but with the right tools and guidance, it can be a rewarding experience. One way to find winning stocks is to use the Zacks Style Scores, which rate stocks based on three investing types: value, growth, and momentum. In this article, we will focus on a value stock that has caught the attention of many investors: Thermo Fisher Scientific Inc. (TMO).
Thermo Fisher Scientific is a leading provider of scientific instruments and reagents for research and analysis in various fields, including genomics, proteomics, and diagnostics. The company has developed a comprehensive portfolio of over 500 proprietary products and solutions for sample preparation and analysis. Value investors love finding good stocks at good prices, and Thermo Fisher Scientific fits the bill perfectly.
Zacks Rank and Style Scores
Thermo Fisher Scientific sits at a Zacks Rank #2 (Buy), which indicates that the stock is a strong buy. Additionally, it holds a Value Style Score of A and a VGM Score of A. These scores are indicators that the stock is attractive and well-discounted compared to its peers.
Valuation Metrics
Compared to the Medical - Biomedical and Genetics industry's P/E of 21.5X, shares of Thermo Fisher Scientific are trading at a forward P/E of 19X. This suggests that the stock is not overvalued compared to its industry peers. Furthermore, Thermo Fisher Scientific has a PEG Ratio of 1.8, a Price/Cash Flow ratio of 15.6X, and a Price/Sales ratio of 3.2X. These ratios indicate that the stock is undervalued compared to its peers in the industry.
Earnings Estimates
Many value investors pay close attention to a company's earnings as well. For Thermo Fisher Scientific, 11 analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.13 to $14.75 per share for 2025. Thermo Fisher Scientific boasts an average earnings surprise of 4.9%, which indicates that the company has consistently exceeded analysts' expectations in the past.
Conclusion
Investors should take the time to consider Thermo Fisher Scientific for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores. With its strong industry position and attractive valuation, Thermo Fisher Scientific is a great candidate for value investors looking to add high-quality stocks to their portfolios.
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