We are using a close only, or line chart, above, for its "clean look," showing just one entry per day. The rally the past two months has recouped the August-September decline. Our technical indicators are in a positive position.
In the point and figure chart of TMO above, we can see an entry on the chart at $140 would equal the prior high; $142 is a breakout to a new price high and should generate further buying and price gains when it happens.
TheStreet Ratings team rates THERMO FISHER SCIENTIFIC INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
We rate THERMO FISHER SCIENTIFIC INC (TMO) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, reasonable valuation levels, good cash flow from operations and growth in earnings per share. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Life Sciences Tools & Services industry average. The net income increased by 0.9% when compared to the same quarter one year prior, going from $471.60 million to $476.10 million.
- Net operating cash flow has increased to $743.90 million or 10.04% when compared to the same quarter last year. In addition, THERMO FISHER SCIENTIFIC INC has also modestly surpassed the industry average cash flow growth rate of 0.79%.
- THERMO FISHER SCIENTIFIC INC's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, THERMO FISHER SCIENTIFIC INC increased its bottom line by earning $4.70 versus $3.49 in the prior year. This year, the market expects an improvement in earnings ($7.39 versus $4.70).
- You can view the full analysis from the report here: TMO
Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.