Thermo Fisher Scientific Inc (TMO): Today's Featured Health Care Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Thermo Fisher Scientific ( TMO) pushed the Health Care sector lower today making it today's featured Health Care laggard. The sector as a whole closed the day down 1%. By the end of trading, Thermo Fisher Scientific fell $1.53 (-2.5%) to $59 on heavy volume. Throughout the day, four million shares of Thermo Fisher Scientific exchanged hands as compared to its average daily volume of 1.8 million shares. The stock ranged in price between $58.36-$60.15 after having opened the day at $59.99 as compared to the previous trading day's close of $60.53. Other companies within the Health Care sector that declined today were: MannKind Corporation ( MNKD), down 24.2%, Align Technology ( ALGN), down 20.4%, CytRx Corporation ( CYTR), down 19.6%, and ImmunoCellular Therapeutics ( IMUC), down 14.1%.
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Thermo Fisher Scientific, Inc. provides analytical instruments, equipment, reagents and consumables, software, and services for research, manufacture, analysis, discovery, and diagnostics. Thermo Fisher Scientific has a market cap of $22.03 billion and is part of the health services industry. The company has a P/E ratio of 20, equal to the average health services industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 34.6% year to date as of the close of trading on Wednesday. Currently there are 14 analysts that rate Thermo Fisher Scientific a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates Thermo Fisher Scientific as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, attractive valuation levels, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Given Imaging ( GIVN), up 19.1%, Aegerion Pharmaceuticals ( AEGR), up 9.3%, Oxygen Biotherapeutics ( OXBT), up 9.1%, and AspenBio Pharma ( APPY), up 8.8%, were all gainers within the health care sector with Stryker Corporation ( SYK) being today's featured health care sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the health care sector could consider Health Care Select Sector SPDR ( XLV) while those bearish on the health care sector could consider ProShares Ultra Short Health Care ( RXD).

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