Stock of the Day

September 22, 2020

Thermo Fisher Scientific (TMO)

$532.55
-$5.28 (-1.0%)
Market Cap: $205.72B

About Thermo Fisher Scientific

Thermo Fisher Scientific Inc. provides life sciences solutions, analytical instruments, specialty diagnostics, and laboratory products and biopharma services in the North America, Europe, Asia-Pacific, and internationally. The company's Life Sciences Solutions segment offers reagents, instruments, and consumables for biological and medical research, discovery, and production of drugs and vaccines, as well as diagnosis of infections and diseases; and solutions include biosciences, genetic sciences, and bio production to pharmaceutical, biotechnology, agricultural, clinical, healthcare, academic, and government markets. Its Analytical Instruments segment provides instruments, consumables, software, and services for pharmaceutical, biotechnology, academic, government, environmental, and other research and industrial markets, as well as clinical laboratories. The company's Specialty Diagnostics segment offers liquid, ready-to-use, and lyophilized immunodiagnostic reagent kits, as well as calibrators, controls, protein detection assays, and instruments; immunodiagnostics develops, manufactures and markets complete bloodtest systems to support the clinical diagnosis and monitoring of allergy, asthma and autoimmune diseases; dehydrated and prepared culture media, collection and transport systems, instrumentation, and consumables; human leukocyte antigen typing and testing for organ transplant market; and healthcare products. Its Laboratory Products and Biopharma Services segment provides laboratory products, research and safety market channel, and pharma services and clinical research. It offers products and services through a direct sales force, customer-service professionals, electronic commerce, and third-party distributors under Thermo Scientific; Applied Biosystems; Invitrogen; Fisher Scientific; Unity Lab Services; and Patheon and PPD. Thermo Fisher Scientific Inc. was founded in 1956 and is headquartered in Waltham, Massachusetts.

Thermo Fisher Scientific Bull Case

Here are some ways that investors could benefit from investing in Thermo Fisher Scientific Inc.:

  • The current stock price is $530.13, reflecting a recent increase of 1.3%, which may indicate positive market sentiment and potential for further growth.
  • Thermo Fisher Scientific Inc. has a robust market capitalization of $202.78 billion, suggesting a strong position in the market and the ability to invest in growth opportunities.
  • The company recently reported earnings per share (EPS) of $6.10, surpassing analysts' expectations of $5.94, which demonstrates strong financial performance and effective management.
  • A share repurchase program has been authorized for up to $4.00 billion, allowing the company to buy back shares, which can enhance shareholder value by reducing the number of outstanding shares and potentially increasing the stock price.
  • With a return on equity of 17.51%, Thermo Fisher Scientific Inc. shows effective use of equity investments to generate profits, which is a positive indicator for investors looking for strong returns.

Thermo Fisher Scientific Bear Case

Investors should be bearish about investing in Thermo Fisher Scientific Inc. for these reasons:

  • Insider selling has been notable, with a total of 20,125 shares sold worth $11,231,699 in the last ninety days, which may raise concerns about the confidence of insiders in the company's future performance.
  • The company has a price-to-earnings (P/E) ratio of 32.03, which is relatively high, indicating that the stock may be overvalued compared to its earnings, potentially leading to a price correction.
  • Thermo Fisher Scientific Inc. has a debt-to-equity ratio of 0.59, which, while manageable, suggests that the company is using some leverage that could pose risks if market conditions change.
  • The stock has experienced fluctuations, with a 12-month high of $627.88 and a low of $493.30, indicating volatility that may deter risk-averse investors.
  • Analysts forecast a PEG ratio of 2.95, which suggests that the stock may not be growing fast enough relative to its price, potentially limiting future upside for investors.

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