Is Now An Opportune Moment To Examine Thermo Fisher Scientific Inc. (NYSE:TMO)?

Thermo Fisher Scientific Inc. -1.63%

Thermo Fisher Scientific Inc.

TMO

565.23

-1.63%

Today we're going to take a look at the well-established Thermo Fisher Scientific Inc. (NYSE:TMO). The company's stock saw a significant share price rise of 24% in the past couple of months on the NYSE. Shareholders may appreciate the recent price jump, but the company still has a way to go before reaching its yearly highs again. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Today we will analyse the most recent data on Thermo Fisher Scientific’s outlook and valuation to see if the opportunity still exists.

Check out our latest analysis for Thermo Fisher Scientific

Is Thermo Fisher Scientific Still Cheap?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 1.0% below our intrinsic value, which means if you buy Thermo Fisher Scientific today, you’d be paying a reasonable price for it. And if you believe the company’s true value is $538.23, then there’s not much of an upside to gain from mispricing. In addition to this, Thermo Fisher Scientific has a low beta, which suggests its share price is less volatile than the wider market.

What kind of growth will Thermo Fisher Scientific generate?

earnings-and-revenue-growth
NYSE:TMO Earnings and Revenue Growth December 29th 2023

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to grow by 53% over the next couple of years, the future seems bright for Thermo Fisher Scientific. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What This Means For You

Are you a shareholder? TMO’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping an eye on TMO, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. In terms of investment risks, we've identified 1 warning sign with Thermo Fisher Scientific, and understanding this should be part of your investment process.

If you are no longer interested in Thermo Fisher Scientific, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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