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.
TMO in +1.92% Uptrend, rising for three consecutive days on June 26, 2025
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where TMO advanced for three days, in of 326 cases, the price rose further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
Bearish Trend Analysis
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
The Momentum Indicator moved below the 0 level on June 17, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on TMO as a result. In of 90 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
TMO moved below its 50-day moving average on June 27, 2025 date and that indicates a change from an upward trend to a downward trend.
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 10, 2025. 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.
The Aroon Indicator for TMO entered a downward trend on June 20, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued 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 (4.713) is normal, around the industry mean (24.307). P/E Ratio (37.375) is within average values for comparable stocks, (77.706). Projected Growth (PEG Ratio) (2.868) is also within normal values, averaging (5.667). Dividend Yield (0.002) settles around the average of (0.018) among similar stocks. P/S Ratio (5.227) is also within normal values, averaging (42.612).
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 Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. TMO’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
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 90, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average 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 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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