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

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 higher today making it today's featured health care winner. The sector as a whole closed the day up 0.1%. By the end of trading, Thermo Fisher Scientific rose $1.47 (1.8%) to $83.91 on average volume. Throughout the day, 2,808,296 shares of Thermo Fisher Scientific exchanged hands as compared to its average daily volume of 2,569,000 shares. The stock ranged in a price between $82.02-$83.95 after having opened the day at $82.19 as compared to the previous trading day's close of $82.44. Other companies within the Health Care sector that increased today were: Affymax ( AFFY), up 43.7%, Insulet Corporation ( PODD), up 14.9%, Pain Therapeutics ( PTIE), up 14.5% and MediciNova ( MNOV), up 12.3%.
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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 $29.5 billion and is part of the health services industry. The company has a P/E ratio of 22.8, above the S&P 500 P/E ratio of 17.7. Shares are up 29.3% year to date as of the close of trading on Monday. Currently there are 11 analysts that rate Thermo Fisher Scientific a buy, no analysts rate it a sell, and none 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 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. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the negative front, Cutera ( CUTR), down 21.1%, Synta Pharmaceuticals ( SNTA), down 15.5%, Oculus Innovative ( OCLS), down 14.5% and Albany Molecular Research ( AMRI), down 14.3% , were all laggards within the health care sector with Perrigo Company ( PRGO) being today's health care sector laggard.

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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