Assessing Thermo Fisher Scientific (TMO) Valuation After Recent Share Price Pullback

Thermo Fisher Scientific (TMO) is back in focus after recent trading left the shares about 18% lower over the past month and roughly 13% lower over the past 3 months. This has prompted closer attention from investors.

See our latest analysis for Thermo Fisher Scientific.

At a share price of US$515.60, Thermo Fisher Scientific’s recent 30 day share price return of a 17.63% decline and 90 day share price return of a 13.09% decline contrast with a 5 year total shareholder return of 13.05%. This suggests momentum has faded compared with longer term holdings.

If this pullback has you reassessing opportunities in healthcare, it could be a good moment to scan 28 healthcare AI stocks and see how other names in the space stack up.

With Thermo Fisher sharing a recent pullback, a small intrinsic discount and a sizable gap to analyst targets, the real question is whether the current price reflects a bargain entry point or if the market already sees future growth ahead.

Most Popular Narrative: 4.6% Undervalued

Thermo Fisher Scientific’s fair value in the most followed narrative sits at $540.27, a touch above the recent $515.60 close, which frames the recent pullback in a different light according to Unike.

Where Will TMO Be in 5 Years? TMO is well-positioned to maintain its leadership in the life sciences industry, driven by R&D expansion, emerging market growth, and continued M&A. If margin expansion and revenue growth targets are met, the stock should continue compounding at a healthy rate.

Read the complete narrative.

Curious how this view gets to that fair value? The narrative leans on steady top line progress, rising profitability and a premium earnings multiple. The exact mix of those inputs is where the story gets interesting.

Result: Fair Value of $540.27 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this story can change quickly if biotech and pharma R&D budgets tighten, or if a large acquisition runs into integration or regulatory problems.

Find out about the key risks to this Thermo Fisher Scientific narrative.

Next Steps

With sentiment clearly split between concern and optimism, it makes sense to look at the data yourself and decide quickly where you stand, especially given there are 5 key rewards and 1 important warning sign that could shape the long term story.

Looking for more investment ideas?

If TMO has you thinking harder about where to put fresh capital, do not stop here. Broaden your watchlist and stress test your thinking with a few targeted screens.

• Zero in on companies the market may be overlooking by scanning our screener containing 23 high quality undiscovered gems and see which names fit your return and risk preferences.
• Prioritise resilience by checking our 78 resilient stocks with low risk scores and compare how these businesses line up against your current holdings.
• Focus on financial strength by running through our solid balance sheet and fundamentals stocks screener (40 results) so you are not caught off guard by hidden balance sheet weakness.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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