TRI Should I Buy
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Thomson Reuters Corp (TRI) is not a strong buy for a beginner, long-term investor at this time. The lack of significant positive catalysts, declining financial performance, and mixed analyst sentiment suggest that waiting for clearer growth signals or a more favorable entry point would be prudent.
The stock's technical indicators show a neutral trend. The MACD is positive but contracting, RSI is neutral at 43.108, and moving averages are converging. The stock is trading near its pivot level of 90.542, with resistance at 96.654 and support at 84.43.
Thomson Reuters has a strong moat in tax software and legal research, with analysts noting that fears around AI disruption may be overstated. The company's involvement in AI tools and partnerships, such as with Anthropic, could provide long-term growth opportunities.
Hedge funds are selling heavily, with a 164.85% increase in selling activity last quarter. Financial performance in Q4 2025 showed significant declines in net income (-43.52%) and EPS (-43.08%), raising concerns about profitability. Analysts have been lowering price targets, and sentiment remains cautious due to competition and AI-related risks.
In Q4 2025, revenue grew by 5.24% YoY to $2.009 billion, but net income dropped significantly by 43.52% to $331 million. EPS also declined by 43.08% to $0.74, and gross margin decreased slightly to 83.62%, indicating weaker profitability.
Analyst sentiment is mixed. Recent downgrades and lowered price targets dominate, with UBS reducing the target to $183 and Wells Fargo lowering it to $87. However, some analysts like RBC Capital see potential upside due to the company's growth ceiling and AI integration.
