TMO stock: buy or sell
Updated on:
Jan 25th, 2021
2
TMO stock brief
- Thermo Fisher Scientific closed last Friday at $514.60 after slightly moving a 0.44%.
- Thermo Fisher Scientific is presenting its earnings report on Thursday
- Thermo Fisher Scientific Inc. provides analytical and other instruments, laboratory equipment, software, consumables, reagents, instrument systems, chemicals, supplies, and services worldwide.
Should I buy Thermo Fisher Scientific stock?
All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $TMO stock a buy?
In the current situation of Thermo Fisher Scientific there is just one buy setup eligible:
ATH buy setup
One of the most recommended trading strategies is to buy on All-time Highs (ATH) breakouts. The good point of buying at ATHs is that price doesn't have upper resistances, and usually it rises rapidly. However, you must always be aware of a possible bulls trap that may trigger your buy order and then falls sharply. That's why a stop loss is always important. Price is now at 3.44% of all-time highs and it can breakout at any time, so if you want to trade this setup it's recommended to setup your order at $532.32. Arm your stop-loss at $479.09
| Buy setup | Buy point | Stop loss | Risk |
| ATH buy setup | $532.32 | $479.09 | 10.00% |
Should I sell Thermo Fisher Scientific stock?
Knowing when to sell a stock is even more difficult than knowing when to buy it. In the same way as when we have to buy shares, deciding when is appropiate to sell is not a haphazard decision, and we must use our own trading style. When selling, as well as buying, our strategies are very easy to follow but are only applicable for selling stocks you already own, not for shorting $TMO stock
As a rule of thumb, you must never mantain an operation that leads to higher than expected losses upon purchase. When to sell your stock always has to be ruled by the stop-loss (automatic or manual)
Is it time to sell Thermo Fisher Scientific stock?
In the current situation of Thermo Fisher Scientific there is not any eligible sell setup, so Thermo Fisher Scientific stock holders with operations in profit can keep their positions
Thermo Fisher Scientific ratings
In the last 30 days, 2 brokerage ratings were published for Thermo Fisher Scientific
| Brokerage firm | Rating |
|---|---|
| Jan 8th, 2021 | |
| Credit Suisse Group | Neutral → Buy |
| Jan 12th, 2021 | |
| Credit Suisse Group | Neutral |
Thermo Fisher Scientific stock analysis
SMAs overview
Supports and resistances
The current resistances are:
The current support levels are:
Bollinger bands
Since the price surpassed the upper band on January 11, the price has been corrected downwards by 0.78%. The price is moving near to the upper Bollinger band, poiting some level of overbought in recent sessions. This is not a bearish indicator, as price can trade in these levels for many days and weeks
Relative strength index
The RSI dropped below the overbought level of 70 on January 12 after just crossing to the overbough zone for a single day (weak signal). The RSI reading last Friday was 66.4. Thermo Fisher Scientific stock merely changed a 0.24% since RSI lost the overbought zone
Thermo Fisher Scientific stock price history
Thermo Fisher Scientific started trading on Mar 17th, 1980 at $0.00 per share1. Since then, TMO stock has risen by -, with an average of 0.00% per year. An investment of $1,000USD at that time would have a value of $inf nowadays.
1: Adjusted price after possible price splits or reverse-splits
Price target for Thermo Fisher Scientific stock
Nobody can predict how much a share will be priced tomorrow. However, many stock price predictions are posted every day by banks, financial institutions and independent analysts.
Along with buy or sell recommendations, financial institutions post their price predictions based on the stock price action and the company fundamental data. Most of these estimates follow the publication of new fundamental data by the company, and many times. If you are a small investor you shouldn't invest based on these predictions.
There are 2 price forecasts released for Thermo Fisher Scientific that average $568.00. Thermo Fisher Scientific closed at $514.60 last Friday, so the target price is expecting an increase by 10.38%.
| Brokerage firm | Price target |
|---|---|
| Jan 8th, 2021 | |
| Credit Suisse Group | $490.00 → $556.00 |
| Jan 12th, 2021 | |
| Credit Suisse Group | $556.00 → $580.00 |
Earnings and financials
TMO ($TMO) will host the earnings call on Thursday. Analysts expect of $6.50, that is a 15.45% higher than previous quarter.
Stocks releasing financial report often show a much higher volatility in price action while market is closed and the day after. This volatility may imply that your stop-loss orders may become useless or may trigger far from your aimed price. It's always good to review company's website to confirm time and details about the earnings call and the earnings report.
Financial call was hosted by Thermo Fisher Scientific ($TMO) last October after presenting the earnings report. TMO beat market estimates and reported of $5.63, that is a 30.63% better than expected versus the initial estimates of $4.31. Aligned to this, reported revenues were $8.5 billion versus estimates of $7.7 billion.
This compares to Earnings of $2.94 per share a year ago, so current EPS is an improvement of 91.50%. Looking at turnover, figures exploded a 35.86% compared to $62.7B same quarter a year ago.Thermo Fisher Scientific performance
| Company | 1m | 3m | 6m |
|---|---|---|---|
| Thermo Fisher Scientific ($TMO) | 11.30% | 9.10% | 27.70% |
Important:
The opinions written in this article are personal and should not be followed as recommendations for you to buy or sell shares. The author of this report does not know the specific circumstances of the reader, his or her own financial statements or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Thoughts are posted for informational motives onlyTMO summary
| Friday, January 22nd, 2021 | |
|---|---|
| Open | $511.71 |
| Close | $514.6 |
| Day range | $510.01 - $517.11 |
| Previous close | $512.36 |
| Session gain | 0.44% |
| Average true range | $18.22 |
| 50d mov avg | $474.77 |
| 100d mov avg | $463.45 |
| 200d mov avg | $414.84 |
| Earnings date | January 28th, 2021 |