Solid fundamentals helping propel Thermo Fisher Scientific higher
Medical equipment provider Thermo Fisher Scientific (NYSE: TMO) has been trending higher for over two and a half years. Sure the stock pulled back in the fourth quarter of 2018, but even then it held up better than most stocks. One of the biggest reasons behind the rally has been good, consistent fundamentals.
Over the last three years the company has been able to grow earnings at a rate of 15% per year while sales have grown at a rate of 14% per year. In the most recent quarterly report, earnings increased by 11% while sales increased by 4%. Analysts expect the company to see earnings increase by 10% for 2019 as a whole while sales are expected to increase by 4.4%.
The company’s management efficiency measurements are above average as well with a return on equity of 17% and a profit margin of 21%.
The Tickeron Fundamental Analysis Overview shows a profit vs. risk rating of 9 for Thermo Fisher, indicating low risk on high returns. The average profit vs. risk rating for the industry is 75, placing this stock better than average.
The Tickeron Valuation Rating of 11 indicates that the company is seriously undervalued in the industry. A rating of 1 points to the most undervalued stocks, while a rating of 100 points to the most overvalued stocks. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization.
The daily chart shows that the stock has been trending higher since the end of December and there is a trend line connecting the lows from the last five months. The slope of the trend isn’t that high, but that seems to go along with the consistency of the fundamentals. The stock hasn’t rocketed higher and then fallen back, it has been on a consistent climb higher.
We see that the stock just recently hit the trend line again and that is the second time it has done so in August. The overbought/oversold indicators dropped in to oversold territory early in August and then reversed, but pulled back down again this past week. The daily stochastic readings made a bullish crossover on August 16 and that could be a good sign for the stock.
The stock also broke below its lower Bollinger band in early August and according to the Tickeron Technical Analysis Overview, in 22 of 31 cases where TMO's price broke its lower Bollinger Band, its price rose further in the following month. That puts the odds of a rally at 71% based on the past statistics.
Taking a look at the weekly chart we see that Thermo Fisher closed below its 52-week moving average for one week back in December and that is the only time the stock has done that in the last two and a half years.
The weekly stochastic readings have recently dipped below the 50 level for the first time since December and for only the seventh time in the last two and a half years. Almost all of the previous instances have marked good buying points for investors.
The sentiment toward Thermo Fisher is relatively bullish, but it seems to be warranted based on how well the company and stock have performed in recent years. There are 17 analysts following the stock at this time and 14 have it rated as a “buy”. There are also two “hold” ratings and one “sell” rating. This puts the overall buy percentage at 82.4% and that is above average.
The short interest ratio is at 1.9 currently and that is below average. This means that both analysts and short sellers are slightly more bullish toward Thermo Fisher than the average stock, but with the fundamental and technical picture, the bullish sentiment seems to be appropriate.
Momentum Indicator for TMO turns positive, indicating new upward trend
TMO saw its Momentum Indicator move above the 0 level on June 25, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 87 similar instances where the indicator turned positive. In of the 87 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for TMO just turned positive on June 24, 2026. Looking at past instances where TMO's MACD turned positive, the stock continued to rise in of 41 cases over the following month. The odds of a continued upward trend are .
TMO moved above its 50-day moving average on June 24, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for TMO crossed bullishly above the 50-day moving average on June 25, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In of 15 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where TMO advanced for three days, in of 312 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 267 cases where TMO Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The RSI Indicator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 14 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TMO declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
TMO broke above its upper Bollinger Band on June 25, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.887) is normal, around the industry mean (13.099). P/E Ratio (29.862) is within average values for comparable stocks, (151.558). Projected Growth (PEG Ratio) (1.792) is also within normal values, averaging (1.656). TMO has a moderately low Dividend Yield (0.003) as compared to the industry average of (0.008). P/S Ratio (4.525) is also within normal values, averaging (7.708).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. TMO’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. TMO’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 92, placing this stock better than average.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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General Information
a developer of analytical and environment monitoring instruments
Industry MedicalSpecialties
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