Thermo Fisher Scientific (TMO) - 11.68% Below 52-Week High: Buy or Wait?

Stock Details

Thermo Fisher Scientific Inc (TMO), a prominent company in the healthcare sector within the diagnostics & research industry, is based in USA and primarily trades on the NYSE.Currently, the stock is trading at $567.66. Over the past 52 weeks, it has ranged between $434.83 and $642.71. This places the current price at 88.3% of its 52-week high and 30.5% above its 52-week low. Recent trading volume was recorded at 277,475. The 14-day Relative Strength Index (RSI) stands at 70.31, suggesting overbought conditions. The stock is currently trading above its 50-day moving average of $502.11 by 13.05%. Similarly, it is above its 200-day moving average of $529.64 by 7.18%. The MACD histogram is 3.16, indicating bullish momentum (MACD Line: 20.46, Signal Line: 17.30). The International Securities Identification Number (ISIN) for this stock is US8835561023.

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

31.06

Above market average

Forward P/E

22.99

Earnings expected to grow

PEG Ratio

1.88

Reasonably valued

Price to Book

4.07

EV/EBITDA

20.98

EPS (TTM)

$18.56

Price to Sales

4.67

Beta

0.87

Less volatile than market

Q:How is TMO valued relative to its earnings and growth?

Thermo Fisher Scientific Inc trades at a P/E ratio of 31.06, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 22.99 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.88 indicates reasonable value when growth is considered.

Q:What is TMO's risk profile compared to the market?

With a beta of 0.87, Thermo Fisher Scientific Inc is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 4.07 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

15.00%

Operating Margin

18.80%

EBITDA

$11.74B

Return on Equity

13.50%

Return on Assets

5.13%

Revenue Growth (YoY)

10.50%

Earnings Growth (YoY)

9.40%

Q:How profitable and efficient is TMO's business model?

Thermo Fisher Scientific Inc achieves a profit margin of 15.00%, meaning it retains $15.00 from every $100 in revenue after all expenses. This represents a solid margin typical of well-run businesses, showing the company can effectively balance revenue generation with cost control. The operating margin of 18.80% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 13.50% and ROA at 5.13%, the company achieves moderate returns on invested capital.

Q:What are TMO's recent growth trends?

Thermo Fisher Scientific Inc's revenue grew by 10.50% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 9.40% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against DIAGNOSTICS & RESEARCH industry averages for proper context.

Dividend Information

Dividend Per Share

$0.86

Dividend Yield

0.15%

Ex-Dividend Date

Sep 15, 2026

Dividend Date

Oct 15, 2026

Q:What dividend income can investors expect from TMO?

Thermo Fisher Scientific Inc offers a dividend yield of 0.15%, paying $0.86 per share annually. This modest yield below 2% suggests the company prioritizes growth investments over current income. While the dividend provides some return, investors are likely attracted more by capital appreciation potential than income generation. To receive the next dividend, shares must be purchased before the ex-dividend date of Sep 15, 2026.

Q:How reliable is TMO's dividend for long-term investors?

The dividend sustainability can be assessed through the payout ratio - Thermo Fisher Scientific Inc pays $0.86 per share in dividends against earnings of $18.56 per share, resulting in a payout ratio of 4.63%. This conservative payout below 30% indicates excellent dividend safety with substantial room for future increases. The company retains most earnings for growth while still rewarding shareholders. The next dividend payment is scheduled for Oct 15, 2026.

Company Size & Market

Market Cap

$212.7B

Revenue (TTM)

$46.34B

Revenue/Share (TTM)

$123.89

Shares Outstanding

371.62M

Book Value/Share

$139.75

Asset Type

Common Stock

Q:What is TMO's market capitalization and position?

Thermo Fisher Scientific Inc has a market capitalization of $212.7B, classifying it as a mega-cap stock (over $200B). These are the largest, most established companies globally, typically offering stability and liquidity but with more modest growth potential. Mega-caps often pay dividends and weather economic downturns better than smaller companies. With 371.62M shares outstanding, the company's ownership is relatively concentrated. As a major player in the DIAGNOSTICS & RESEARCH industry, it competes with other firms in this sector.

Q:How does TMO's price compare to its book value?

Thermo Fisher Scientific Inc's book value per share is $139.75, while the current stock price is $567.66, resulting in a price-to-book (P/B) ratio of 4.06. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$627.62

10.56% upside potential

Analyst Recommendations

Strong Buy

Buy

Hold

Sell

Strong Sell

Q:How reliable are analyst predictions for TMO?

29 analysts cover TMO with 79% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The strong bullish consensus may already be priced in. The consensus target of $627.62 implies 10.6% upside, but targets are often adjusted to follow price moves rather than predict them.

Q:What is the Wall Street consensus on TMO?

Current analyst recommendations:5 Strong Buy, 18 Buy, 6 Hold, 00The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Jul 31, 2026, 02:05 AM

Technical Indicators

RSI (14-day)

70.31

Overbought

50-Day Moving Average

$502.11

13.05% above MA-50

200-Day Moving Average

$529.64

7.18% above MA-200

MACD Line

20.46

MACD Signal

17.30

MACD Histogram

3.16

Bullish

Q:What does TMO's RSI value tell investors?

The RSI (Relative Strength Index) for TMO is currently 70.31, indicating the stock is in overbought territory (above 70). This suggests strong recent buying pressure that may be unsustainable. While overbought conditions can persist in strong trends, traders often watch for RSI divergences or a drop below 70 as potential sell signals. Combined with the price being above the 50-day moving average, this confirms bullish conditions.

Q:How should traders interpret TMO's MACD and moving average crossovers?

MACD analysis shows the MACD line at 20.46 above the signal line at 17.30, with histogram at 3.16. This bullish crossover suggests upward momentum is building. The wide histogram confirms strong momentum. The 50-day MA ($502.11) is below the 200-day MA ($529.64), forming a death cross pattern that often warns of extended weakness. Price is currently above both MAs, confirming strength.

Indicators last updated: Jul 31, 2026, 10:16 AM

Thermo Fisher Scientific Inc (TMO) Stock