TRI Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Loading...
Thomson Reuters Corp (TRI) is not a strong buy at the moment for a beginner investor with a long-term strategy. While the stock has potential upside due to its AI-driven growth narrative and analyst upgrades, the technical indicators show a bearish trend, and the financial performance in the latest quarter reflects declining net income and EPS. The options data suggests a neutral to slightly bearish sentiment. Given the investor's preference for long-term stability and the lack of immediate positive trading signals, holding off on purchasing the stock is recommended for now.
The technical indicators show a bearish trend. The MACD histogram is negative (-1.841) and contracting, RSI_6 is at 15.558, indicating the stock is oversold, and the moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock is trading near its support level (S1: 86.04), with resistance levels far above (R1: 107.501).
RBC Capital upgraded the stock to 'Outperform,' citing potential upside due to AI-driven growth and a reacceleration of organic growth.
Canaccord sees the recent selloff as a buying opportunity, highlighting the company's strong market position and shareholder return potential.
Goldman Sachs noted robust 9% YoY organic revenue growth in key segments and significant margin expansion.
Hedge funds are selling, with a significant 164.85% increase in selling activity over the last quarter.
Financial performance in Q4 2025 showed a sharp decline in net income (-43.52% YoY) and EPS (-43.08% YoY).
Bearish technical indicators and the stock trading near its support level suggest limited short-term upside.
Concerns about AI competition in the legal and information services sectors are weighing on investor sentiment.
In Q4 2025, revenue increased by 5.24% YoY to $2.009 billion, but net income dropped by 43.52% YoY to $331 million. EPS also declined by 43.08% YoY to $0.74. Gross margin improved by 18.27% YoY to 100, reflecting operational efficiency despite declining profitability.
Analyst sentiment is mixed but leans positive. RBC Capital upgraded the stock to 'Outperform,' and Canaccord and Goldman Sachs maintain buy ratings, citing strong fundamentals and growth potential. However, several firms, including JPMorgan, BMO Capital, and Morgan Stanley, lowered their price targets, reflecting concerns about AI competition and growth sustainability. Price targets range from $100 to $175, with a median around $126.
