TMO Stock Analysis — Thermo Fisher Scientific
Sector: Healthcare
AI Verdict
Thermo Fisher trades at 18.9x next year's earnings while analysts expect 36.6% EPS growth—this is cheap for the growth on offer, and the company's entrenched position in lab workflows makes those expectations more credible than most.
Competitive Moat
Thermo Fisher dominates life sciences tools and diagnostics with a vast portfolio of proprietary instruments, consumables, and critical reagents that labs rely on for daily operations. Its scale, integrated supply chain, and deep customer relationships create high switching costs for research and clinical customers.
Summary
Thermo Fisher is notable now for its expected 36.6% EPS growth next year, far outpacing the sector median.
Where It Stands
The stock is up 10.72% over the past year, trades at 18.9x forward earnings (below the healthcare sector median of 22x), and its RSI of 43.2 signals cooling momentum after recent gains.
Key Metrics
- RSI: 43.2 — Neutral
- Trailing P/E: 25.8x
- Forward P/E: 18.9x
- PEG Ratio: 0.71
- Earnings Growth: +0.4%
- Revenue Growth: +0.1%
- Market Cap: $174.6B
- Dividend Yield: 0.00%
- 1-Year Return: 10.72%
- 52-Week High: $643.99
- 52-Week Low: $385.46
Analyst Consensus
31 Buy · 4 Hold · 0 Sell (35 analysts)
Bull Case
With forward EPS growth forecast at 36.6% and a forward P/E of just 18.9x, the market is pricing in much less growth than analysts expect.
Bear Case
If the P/E reverts to the sector median of 22x while momentum stays muted (RSI 43.2), upside could stall and returns could flatten near current levels.
Catalyst to Watch
Watch for upcoming clinical trial wins or new instrument launches, as either could reinforce the moat and justify the high EPS growth consensus.