TS Should I Buy
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Tenaris SA (TS) is not a strong buy for a beginner investor with a long-term strategy at this moment. While the company has positive long-term prospects and hedge funds are showing increased interest, the current technical indicators suggest the stock is overbought, and the financial performance in the latest quarter shows a decline in net income and EPS. Additionally, there are no recent positive news catalysts or significant congress trading data to support a strong buy decision.
The technical indicators show a bullish trend with MACD positively expanding and moving averages in a bullish alignment (SMA_5 > SMA_20 > SMA_200). However, the RSI is at 81.047, indicating the stock is overbought. The stock is trading near its resistance levels (R1: 58.075, R2: 59.54), which may limit immediate upside potential.
Hedge funds are significantly increasing their positions in the stock, with a 357.08% increase in buying over the last quarter. Analysts have raised price targets recently, with TD Cowen setting a target of $60 and maintaining a Buy rating, citing the company's integrated model and potential for upside to guidance.
The stock is currently overbought based on RSI, and short-term price trends suggest a potential decline (-1.63% in the next week, -5.11% in the next month). Financial performance in the latest quarter shows a decline in net income (-13.05% YoY) and EPS (-6.38% YoY), which may concern long-term investors.
In Q4 2025, revenue increased by 5.27% YoY to $2.995 billion, and gross margin improved to 33.89% (up 4.47% YoY). However, net income dropped by 13.05% YoY to $448.865 million, and EPS declined by 6.38% YoY to $0.44, indicating some profitability challenges.
Analysts are generally positive on the stock, with multiple firms raising their price targets recently. TD Cowen has the highest target at $60, while Goldman Sachs maintains a Neutral rating with a target of $49.70. The consensus leans towards a Buy rating, with optimism about the company's integrated model and potential for guidance outperformance.
