The tech sector has been on a tear this year, including the Magnificent Seven, driving the market higher. Smaller tech players are seeing big gains too. Thermo Fisher Scientific is among them.
On Wednesday the Relative Strength Rating for Thermo Fisher stock improved from 69 to 73. The upgrade came after its stock shot up 42% since late October. Although its stock is performing well and it seems to have turned a corner, lingering weak sales numbers are a yellow flag to watch.
The upgraded 73 RS Rating shows that Thermo Fisher stock tops more than 70% of stocks for price appreciation over the past 52 weeks. It also reflects its strong stock gains this year.
Thermo Fisher Scientific makes optical spectrometry devices that measure properties of light, a capability used in various industries. It also offers a wide range of other instruments and services. Various industries use its gear, ranging from medical to green energy to scientific research and others. It also offers lab services and support.
Thermo Fisher Stock A Favorite Of Big Funds
Among its other key ratings Thermo Fisher stock has a respectable 84 Composite Rating out of 99. Its EPS Rating is a tad better at 86. However, a lot of that strength is due to growth in past years and just recently. Thermo Fisher sales and profits both declined in the first half of 2023.
Still, it earns a healthy B SMR Rating (sales + profit margins + return on equity) on an A-to-E scale with A terrific and E lousy. Additionally its B+ Accumulation/Distribution Rating shows that mutual funds, retirement funds and the like are fairly heavy buyers of its stock.
Thermo Fisher Scientific reported 5% earnings growth in its most recent quarter, to a hefty $5.67 per share. Sales fell 5% year over year to $10.9 billion. Its earnings performance improved over the past year from a 31% drop in the March 2023 ended quarter to -7%, 12% and the 5% gain last quarter. Revenue has been weaker, falling by single digits over that same time span.
When To Sell Stocks To Lock In Profits And Minimize Losses
Shares Trending Sharply Higher Lately
Investors seem confident that it's on the rebound. Wednesday afternoon, Thermo Fisher shares were on track to close higher nine of the past 11 trading sessions. The stock traded at about 590 Wednesday afternoon, up for the day.
The scientific instruments maker has moved more than 5% past a 526.60 entry in a first-stage consolidation, meaning it's now out of a proper buy zone. Look for the stock to offer a chance to pick up shares like a three-weeks tight or pullback to the 50-day or 10-week moving average.
Thermo Fisher stock earns the No. 8 rank among its peers in the 44-stock Medical-Research Equipment/Services industry group, according to MarketSurge research. Medpace Holdings, Icon and Charles River Labs are among the top 5 highly rated stocks in the group. The group itself boasts an A- Group Relative Strength Rating
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