TMO Should I Buy
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Thermo Fisher Scientific Inc (TMO) is not a strong buy at the moment for a beginner investor with a long-term strategy. While the company has shown solid financial performance in Q1 2026, the stock is currently facing negative momentum, insider selling, and weak technical indicators. It is better to wait for a more favorable entry point or stronger positive catalysts.
The MACD is negatively expanding, indicating bearish momentum. RSI is at 21.438, suggesting the stock is oversold but not providing a clear buy signal. Moving averages are converging, showing no strong trend. The stock is trading near its S1 support level of 471.14, with resistance at 502.772.
Thermo Fisher exceeded revenue expectations in Q1 2026 with a 6% YoY increase and strong EPS growth of 11.31%. Analysts maintain mostly positive ratings, with several firms reiterating Buy or Outperform ratings despite lowering price targets.
The stock has dropped 9% following Q1 results due to concerns over reduced funding for universities and research institutions. Insider selling has surged by 3567.45% in the last month, signaling potential lack of confidence from insiders. Gross margin dropped by 10.01% YoY, raising profitability concerns.
In Q1 2026, revenue increased by 6.18% YoY to $11.01 billion, net income rose by 9.56% YoY to $1.65 billion, and EPS grew by 11.31% YoY to $4.43. However, gross margin declined to 36.77%, down 10.01% YoY, indicating cost pressures.
Analysts remain generally positive on TMO, with most maintaining Buy or Outperform ratings. However, several firms have lowered price targets recently, citing sector risks and reduced funding in key markets. Price targets now range from $575 to $685, with the average target significantly above the current price.
