Thermo Fisher Scientific Inc. (NYSE:TMO) Initiated with a Sell at Stock Traders Daily

Stock Traders Daily has initiated coverage of Thermo Fisher Scientific Inc. (NYSE:TMO) with a sell rating.  Based on valuation that relates directly to earnings growth, our assessment suggests that the multiple currently being paid for shares of TMO exceeds its growth rate; it is expensive accordingly.

Furthermore, our macro economic analysis, The Investment Rate, tells us that the economy and the stock market are likely to come under severe pressure as new demand for equities in the United States retraces back to its natural level, something that is reasonable now that stimulus is over and that institutional margin debt levels are already at excessive highs.

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With a reversion back to natural demand levels multiple contractions are likely in the stock market and those stocks that look rich will likely be most vulnerable to a decline.

With a high current PE multiple and a low current growth rate, and with expectations for that to continue for at least the next year, we believe investors in TMO should sell.

Technical Summary

Term →Near Mid Long
Bias Neutral Strong Neutral
P1 137.57 123.28 113.80
P2 138.77 135.32 135.43
P3 139.96 146.58 147.68

Long Term Trading Plans for TMO

March 29, 2016, 3:23 pm ET

The technical Summary and associated Trading Plans for TMO listed below will help you make important timing decisions for your trades. This data is based on our proprietary analysis for TMO. In addition we offer Market Timing Models and Stock Filters in the links above which may increase the proficiency of the decisions you make.

TMO - (Long) Support Plan

Buy over 135.43 target 147.68 stop loss @ 135.17.
The technical summary data tells us to buy TMO near 135.43 with an upside target of 147.68. This data also tells us to set a stop loss @ 135.17 to protect against excessive loss in case the stock begins to move against the trade. 135.43 is the first level of support below 138.53 , and by rule, any test of support is a buy signal. In this case, support 135.43 is being tested, a buy signal would exist.

TMO - (Short) Resistance Plan

Short under 147.68 target 135.43 stop loss @ 147.94
The technical summary data is suggesting a short of TMO as it gets near 147.68 with a downside target of 135.43. We should have a stop loss in place at 147.94 though. 147.68 is the first level of resistance above 138.53, and by rule, any test of resistance is a short signal. In this case, if resistance 147.68 is being tested, a short signal would exist.


TMO Long Term Analysis


TMO EPS Analysis

TMO Dividend Chart

TMO Revenue chart

TMO Growth rate - Quarterly

TMO Growth rate - Yearly

TMO PE chart

TMO PEG chart

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