Thermo Fisher Scientific Inc (TMO): Today's Featured Health Services 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 Services industry lower today making it today's featured Health Services laggard. The industry as a whole closed the day up 0.5%. By the end of trading, Thermo Fisher Scientific fell $1.08 (-1.3%) to $80.12 on average volume. Throughout the day, 2,485,522 shares of Thermo Fisher Scientific exchanged hands as compared to its average daily volume of 2,634,800 shares. The stock ranged in price between $79.99-$81.39 after having opened the day at $81.30 as compared to the previous trading day's close of $81.20. Other companies within the Health Services industry that declined today were: Amedisys ( AMED), down 8.3%, Vision-Sciences Inc (DE ( VSCI), down 6.7%, Ironwood Pharmaceuticals ( IRWD), down 6.4% and Varian Medical Systems ( VAR), down 6.3%.
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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 $28.9 billion and is part of the health care sector. The company has a P/E ratio of 23.5, above the S&P 500 P/E ratio of 17.7. Shares are up 27.3% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Thermo Fisher Scientific as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, increase in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the positive front, IPC The Hospitalist Company ( IPCM), down 12.9%, Icon ( ICLR), down 9.2%, Lakeland Industries ( LAKE), down 8.3% and IMRIS ( IMRS), down 7.1% , were all gainers within the health services industry with Express Scripts ( ESRX) being today's featured health services industry leader.

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

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