Sell Alert: Thermo Fisher Scientific, Inc. (TMO)
TMO was recommended as a Top Pick for 2013 by Dow Theory Forecasts at $65.47 in Investment Digest issue 734, dated January 9, 2013.
“Thermo Fisher Scientific, Inc. (TMO, NYSE) is being dropped from the Focus, Buy, and Long-Term Buy lists. Up 40% since we first recommended it last October, Thermo Fisher hovers near an all-time high. But operating momentum has failed to keep up with the surging stock. Moreover, Thermo Fisher plans to suspend stock buybacks while completing its $15.8 billion acquisition of Life
Technologies (LIFE), limiting per-share-profit growth. That move prompted analysts to cut profit estimates for the remainder of 2013, driving the Quadrix Earnings Estimates score down to 12. The stock’s other Quadrix scores are also declining—the Overall score has fallen to 50 from 93 at the end of 2012. Thermo Fisher is now rated B (average).”
Richard J. Moroney, CFA, Dow Theory Forecasts, www.dowtheory.com, 800-233-5922, 5/20/13