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Thermo Fisher Scientific Inc. (TMO)

TMO stock forecast: buy or sell

Close on Oct 23rd, 2020
$480.17 -0.38%
3 months performance
16.70%
Published: October 23rd, 2020 - 6.05pm EDT

TMO stock outlook

  • Thermo Fisher Scientific scarcely moved a -0.38% after marking new all-time highs yesterday
  • Thermo Fisher Scientific made public its financial report on Wednesday
  • BTIG Research, Credit Suisse Group, Morgan Stanley and 2 others posted bullish ratings for Thermo Fisher Scientific yesterday, with an average target of $520.00
  • Thermo Fisher Scientific Inc. provides analytical and other instruments, laboratory equipment, software, consumables, reagents, instrument systems, chemicals, supplies, and services worldwide.

Important note:
The thoughts contained in this article are personal and not recommendations for you to buy or sell shares. The author of this report does not know the specific scenarios of the reader, his or her own finances or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Thoughts are expressed for education reasons only

TMO stock charts

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?

Currently, Thermo Fisher Scientific stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean $TMO will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems

Should I sell Thermo Fisher Scientific stock?

Knowing when to sell a stock is even harder than knowing when to buy it. Trading strategies give us the ability us to avoid impetuous decisions based on our feelings or the buzz surrounding the market. We like very simple setups to guide us on when is the best moment to sell a stock. Be aware that these setups should not be used for shorting Thermo Fisher Scientific stock

As a golden rule, you should never keep a trading operation that produces losses greater than those expected upon purchase. When to sell your stock must always be ruled by the stop-loss (automatic or manual)

Is it time to sell Thermo Fisher Scientific stock?

Currently, Thermo Fisher Scientific stock doesn't match any of our preferred sell setups, so if you hold Thermo Fisher Scientific stock and your operation is in profit probably is not time to sell now

Analysts' recommendations to buy or sell Thermo Fisher Scientific stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last 30 days, 7 brokerage ratings were published for Thermo Fisher Scientific. General sentiment is bullish, with 6 out of 7 publishing optimistic forecasts

Thermo Fisher Scientific ratings

Brokerage firmRating
Sep 30th, 2020
Atlantic Securities Buy
Oct 5th, 2020
JPMorgan Chase & Co. Buy
Oct 22nd, 2020
BTIG Research BuyStrong buy
Oct 22nd, 2020
Credit Suisse Group Neutral
Oct 22nd, 2020
Morgan Stanley Buy
Oct 22nd, 2020
Robert W. Baird Buy
Oct 22nd, 2020
SVB Leerink Buy

Technical analysis

$TMO at new All-time Highs

Yesterday, Thermo Fisher Scientific reached all-time highs (ATH) again at $485.00. Stock rallied fast in the last 2 weeks, cracking new all-time highs 4 times

SMAs overview

Moving averages are simple indicators for traders to measure stock direction. A moving average is the average price of a stock over a set period of time. Moving averages are usually calculated on different periods depending on the trading timeframe 21, 50, 100 and 200 days are the most usual moving averages

TMO SMAs chart

Supports and resistances

Technical analysts use supports and resistances to spot price points on a chart that may act as barriers, preventing the price of an asset to move in certain direction. A support level is a level where the price may stop as it falls. This means that the price is more likely to "bounce off" this level rather than break through it. However, if the price breaks down the support, it will probably continue descending until meeting another support level. On the contrary, a resistance level is where the price may find a curb as it moves up. Again, this means that the price is more liable to "bounce off" at this level, and if it finally ruptures this level, it will rise more easily until it meets the next resistance

Price is at highs and there are not upper resistance levels.

The current support levels are:

  • S1: $441.73 (-8.01% below)
  • S2: $423.48 (-11.81% below)
  • S3: $401.02 (-16.48% below)
  • Bollinger bands

    This is an indicator that was created in the 1980s by John Bollinger. Essentially, the Bollinger Bands are bands that fluctuate around a centralmoving average, varying the distance from the bottom to the top depending on market volatility. They are usually drawn by an offset of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    The price is moving near to the upper Bollinger band, indicating some level of overbought in recent sessions. This is not a sell point, as price can trade in these levels for many days and weeks

    TMO RSI chart

    Relative strength index

    The RSI (Relative Strength Index) is an oscillator-type indicator that gauges price changes to spot when the share or financial asset is overbought or oversold. Oscillator indicators, such as relative strength, are designed to indicate values in the range of 0-100. J. Welles Wilder introduced the relative strength indicator in 1978 and since then it has been widely used by stock traders

    RSI crossed over the 70 level today, with a reading of 70.4. The fact that the RSI value is in the overbought zone does not in any way imply a sell signal, as shares can be in the overvalued zone for many, many weeks and may continue to gain

    TMO RSI chart

    Earnings and financials

    Fiscal third-quarter shareholders call was hosted by Thermo Fisher Scientific ($TMO) on Wednesday after posting the financial report. TMO reported fiscal third-quarter earnings of $5.63 per share on revenue of $8.5 billion. The Wall St estimate was $4.31 per share on revenue of $7.7 billion.

    In contrast, the EPS for the same quarter last year was $2.94, so current EPS means a increase of 91.5%. Looking at revenue, figures skyrocketed a 35.86% compared to $6.3B same quarter a year ago.

    TMO ($TMO) is releasing quarterly earnings report next January 2021.

    TMO revenues and profits chart