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TMO vs WAT
Which Stock Would AI Choose? Thermo Fisher Scientific (TMO) vs. Waters Corporation (WAT) Stock Comparison
Key Takeaways
- TMO and WAT both serve the life sciences and analytical instruments markets, but they differ sharply in scale, diversification, and growth profile.
- TMO reported roughly 9% revenue growth and 15% adjusted EPS (earnings per share) growth in its most recent quarter, raised full-year guidance, and trades near its 52-week high.
- WAT is integrating its large BD Biosciences acquisition, posting double-digit organic growth but absorbing GAAP losses and margin pressure from purchase accounting.
- Tickeron AI Verdict: TMO is the favored ticker of the two, based on trend consistency, scale, and relative stability.
- For more detail, explore TMO Major News, TMO Today's Price Move, WAT Major News, and WAT Today's Price Move.
- To see how AI trading bots are positioned across the market, explore the Trending AI Robots page.
Introduction
Thermo Fisher Scientific and Waters Corporation are two well-known names in analytical and life sciences tools, but they occupy very different positions within the sector. TMO is a diversified industry giant spanning instruments, laboratory products, diagnostics, and biopharma services, while WAT is a more focused analytical instrumentation specialist undergoing a transformative acquisition. This stock comparison is relevant for investors and traders weighing a large-cap, steady compounder against a smaller, higher-growth integration story. Understanding their relative performance, momentum, and market positioning can help clarify which profile fits a given risk tolerance.
TMO Overview and Recent Performance
Thermo Fisher Scientific is the world's leading supplier of scientific instruments, reagents, consumables, and services, with broad exposure to pharmaceutical, biotech, academic, and diagnostic customers. In recent weeks, TMO reported third-quarter revenue of about $12.14 billion, up roughly 9% year over year, with adjusted EPS rising about 15% and adjusted operating margin expanding to approximately 24.5%. Management raised full-year revenue and earnings guidance, reflecting continued strength in pharma and biotech demand, a rebound in China, and contributions from acquired assets such as Clario and Patheon.
Sentiment has been broadly constructive. Multiple Wall Street firms lifted price targets following the results, and the consensus rating is a Strong Buy. The stock has traded near its 52-week high in recent market activity, supported by stable organic growth and margin expansion, though a forward P/E (price-to-earnings ratio) in the mid-to-high 30s reflects a premium valuation. Key factors influencing performance include the divestiture of the microbiology business, AI-enabled tools and services, and ongoing exposure to softer academic and government funding.
WAT Overview and Recent Performance
Waters Corporation develops analytical instruments, software, and consumables focused on liquid chromatography, mass spectrometry, and thermal analysis for regulated, high-volume testing environments. WAT is in the early stages of integrating its acquisition of BD Biosciences and Diagnostic Solutions, a transaction that roughly doubled the company's revenue base. Recent quarters have shown double-digit organic constant-currency growth, with strength in pharma, chemistry, and service revenue, along with accelerating demand tied to GLP-1 testing and PFAS (per- and polyfluoroalkyl substances) applications.
However, the integration has introduced complexity. Reported results have been weighed down by acquisition-related purchase accounting, including intangible amortization and inventory step-up charges, producing GAAP net losses even as adjusted EPS grew. Management has raised its full-year organic growth and adjusted EPS guidance and highlighted early synergy wins, including pricing discipline and contract compliance. The stock rose following its most recent earnings reports, but the company's higher leverage, margin transition, and integration execution risk remain central watch items for investors.
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Head-to-Head Comparison
The most obvious contrast is scale and diversification. TMO carries a market capitalization of roughly $257 billion and spans four broad segments, providing a smoother, more diversified earnings stream. WAT is far smaller, around $30-35 billion, and is more concentrated in analytical instrumentation and, now, diagnostics. Growth drivers also differ: TMO's momentum leans on pharma services, AI-enabled workflows, and diagnostics, while WAT's narrative centers on acquisition synergies, instrument replacement cycles, and niche demand areas such as GLP-1 and PFAS testing.
Risk profiles diverge meaningfully. TMO's primary risks include a premium valuation, softer academic and government funding, and portfolio-shift dilution from divestitures. WAT faces higher financial leverage, purchase-accounting distortions, and the execution risk inherent in integrating a transformative acquisition. On momentum, both stocks have trended higher, but TMO's move has been more consistent and supported by broad-based analyst upgrades, while WAT's gains have been more event-driven and tied to integration milestones.
Tickeron AI Verdict
Based on observable factors such as trend consistency, scale, stability, and relative positioning, Tickeron's AI would likely favor TMO over WAT in the current environment. TMO combines a steadier uptrend, diversified revenue streams, rising margins, and raised guidance with strong consensus support, offering a more balanced risk profile. WAT presents compelling growth optionality through its acquisition, but its higher leverage, GAAP losses, and integration complexity introduce greater variability. This assessment reflects probabilistic positioning rather than a definitive forecast, and conditions could shift as new data emerges.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is TMO is a StrongBuy and WAT is a Hold.
Momentum Indicator for TMO turns positive, indicating new upward trend
TMO saw its Momentum Indicator move above the 0 level on October 15, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 87 similar instances where the indicator turned positive. In 59 of the 87 cases, the stock moved higher in the following days. The odds of a move higher are at 68%.
Technical Analysis (Indicators)
Bullish Trend Analysis
Following a +2.33% 3-day Advance, the price is estimated to grow further. Considering data from situations where TMO advanced for three days, in 192 of 308 cases, the price rose further within the following month. The odds of a continued upward trend are 62%.
The Aroon Indicator entered an Uptrend today. In 132 of 244 cases where TMO Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 54%.
Bearish Trend Analysis
The 10-day RSI Indicator for TMO moved out of overbought territory on October 01, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 36 similar instances where the indicator moved out of overbought territory. In 17 of the 36 cases, the stock moved lower in the following days. This puts the odds of a move lower at 47%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 35 of 67 cases where TMO's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 52%.
The Moving Average Convergence Divergence Histogram (MACD) for TMO turned negative on November 02, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 43 similar instances when the indicator turned negative. In 22 of the 43 cases the stock turned lower in the days that followed. This puts the odds of success at 51%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TMO declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 61%.
TMO broke above its upper Bollinger Band on October 15, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is 14 (best 1 - 100 worst), indicating outstanding price growth. TMO’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 31 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is 60 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 63 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.901) is normal, around the industry mean (65.986). P/E Ratio (37.525) is within average values for comparable stocks, (3.066). Projected Growth (PEG Ratio) (2.021) is also within normal values, averaging (3.473). Dividend Yield (0.003) settles around the average of (0.002) among similar stocks. P/S Ratio (5.247) is also within normal values, averaging (9.775).
The Tickeron Profit vs. Risk Rating rating for this company is 67 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. TMO’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 85, placing this stock better than average.
WAT's MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for WAT turned positive on October 21, 2026. Looking at past instances where WAT's MACD turned positive, the stock continued to rise in 33 of 45 cases over the following month. The odds of a continued upward trend are 73%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 20, 2026. You may want to consider a long position or call options on WAT as a result. In 59 of 92 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 64%.
Following a +2.46% 3-day Advance, the price is estimated to grow further. Considering data from situations where WAT advanced for three days, in 179 of 279 cases, the price rose further within the following month. The odds of a continued upward trend are 64%.
The Aroon Indicator entered an Uptrend today. In 118 of 207 cases where WAT Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 57%.
Bearish Trend Analysis
The 10-day RSI Indicator for WAT moved out of overbought territory on October 30, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 34 similar instances where the indicator moved out of overbought territory. In 15 of the 34 cases, the stock moved lower in the following days. This puts the odds of a move lower at 44%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 49 of 70 cases where WAT's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 70%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where WAT declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 62%.
WAT broke above its upper Bollinger Band on October 27, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 3 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 19 (best 1 - 100 worst), indicating outstanding price growth. WAT’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 51 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 85, placing this stock slightly better than average.
The Tickeron Seasonality Score of 75 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of 88 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.974) is normal, around the industry mean (65.986). WAT has a moderately high P/E Ratio (115.553) as compared to the industry average of (3.066). Projected Growth (PEG Ratio) (1.649) is also within normal values, averaging (3.473). Dividend Yield (0.000) settles around the average of (0.002) among similar stocks. P/S Ratio (6.752) is also within normal values, averaging (9.775).
The Tickeron SMR rating for this company is 89 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
TMO | WAT | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 39 | 22 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 63 Fair valued | 88 Overvalued | |
PROFIT vs RISK RATING 1..100 | 67 | 51 | |
SMR RATING 1..100 | 60 | 89 | |
PRICE GROWTH RATING 1..100 | 14 | 19 | |
P/E GROWTH RATING 1..100 | 31 | 3 | |
SEASONALITY SCORE 1..100 | 50 | 75 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
TMO's Valuation (63) in the Medical Specialties industry is in the same range as WAT (88). This means that TMO’s stock grew similarly to WAT’s over the last 12 months.
WAT's Profit vs Risk Rating (51) in the Medical Specialties industry is in the same range as TMO (67). This means that WAT’s stock grew similarly to TMO’s over the last 12 months.
TMO's SMR Rating (60) in the Medical Specialties industry is in the same range as WAT (89). This means that TMO’s stock grew similarly to WAT’s over the last 12 months.
TMO's Price Growth Rating (14) in the Medical Specialties industry is in the same range as WAT (19). This means that TMO’s stock grew similarly to WAT’s over the last 12 months.
WAT's P/E Growth Rating (3) in the Medical Specialties industry is in the same range as TMO (31). This means that WAT’s stock grew similarly to TMO’s over the last 12 months.
| TMO | WAT | |
|---|---|---|
| RSI ODDS (%) | 3 days ago 47% | 2 days ago 44% |
| Stochastic ODDS (%) | 2 days ago 52% | 2 days ago 70% |
| Momentum ODDS (%) | 2 days ago 68% | 2 days ago 64% |
| MACD ODDS (%) | 2 days ago 51% | 2 days ago 73% |
| TrendWeek ODDS (%) | 2 days ago 62% | 2 days ago 63% |
| TrendMonth ODDS (%) | 2 days ago 63% | 2 days ago 64% |
| Advances ODDS (%) | 7 days ago 62% | 7 days ago 64% |
| Declines ODDS (%) | 3 days ago 61% | 3 days ago 62% |
| BollingerBands ODDS (%) | 2 days ago 52% | 2 days ago 71% |
| Aroon ODDS (%) | 2 days ago 54% | 2 days ago 57% |
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is overvalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
TMO’s FA Score shows that 2 FA rating(s) are green while WAT’s FA Score has 2 green FA rating(s).
- TMO’s FA Score: 2 green, 3 red.
- WAT’s FA Score: 2 green, 3 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
TMO’s TA Score shows that 3 TA indicator(s) are bullish while WAT’s TA Score has 4 bullish TA indicator(s).
- TMO’s TA Score: 3 bullish, 5 bearish.
- WAT’s TA Score: 4 bullish, 4 bearish.
Price Growth
TMO (@Medical Specialties) experienced а +0.77% price change this week, while WAT (@Medical Specialties) price change was -1.85% for the same time period.
The average weekly price growth across all stocks in the @Medical Specialties industry was -2.30%. For the same industry, the average monthly price growth was -5.24%, and the average quarterly price growth was +42.12%.
Reported Earning Dates
TMO is expected to report earnings on Feb 04, 2027.
WAT is expected to report earnings on Feb 17, 2027.
Industries' Descriptions
@Medical Specialties (-2.30% weekly)Medical specialties are companies that make equipment used by the health care industry. Equipment manufactured and distributed by these companies include dialysis machines, blood analysis equipment, surgical equipment, dental instruments, and diagnostic tools, among other items. Large companies typically aim to produce and distribute high-quality products across a broad market spectrum. Smaller firms are more likely to specialize in a particular market segment. Due to the industry’s close association with medical treatments, they typically have low sensitivity to macroeconomic fluctuations. Within this industry, Abbott Laboratories, Medtronic Plc and Thermo Fisher Scientific Inc. are some of the companies with multi-billion market capitalizations in the U.S. stock markets.
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