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TMO vs WAT
Which Stock Would AI Choose? Thermo Fisher Scientific (TMO) vs. Waters Corporation (WAT) Stock Comparison
Key Takeaways
- Scale and scope differ sharply: Thermo Fisher Scientific is a diversified life-sciences and diagnostics giant with a market capitalization around $250 billion, while Waters Corporation is a more focused analytical-instruments and diagnostics player valued near $40 billion.
- Growth engines are different: Thermo Fisher's momentum is broad-based across pharma and biotech services, whereas Waters' recent acceleration stems heavily from its transformative acquisition of BD's Biosciences and Diagnostic Solutions business.
- Recent momentum: Thermo Fisher has broken out to multi-month highs on raised guidance, while Waters has rallied strongly on better-than-expected results and integration progress.
- Risk profiles contrast: Thermo Fisher carries exposure to academic and government spending and a sizeable debt load, while Waters faces acquisition-integration risk and China-related headwinds in parts of its new portfolio.
- Valuation and positioning: Both trade at premium multiples to peers, reflecting leadership in high-value scientific markets, but their relative performance and catalysts differ meaningfully.
Introduction
Investors evaluating the life-sciences and laboratory-tools sector often encounter two very different profiles under one broad label. TMO, Thermo Fisher Scientific, is a diversified, globally scaled leader spanning analytical instruments, diagnostics, and pharmaceutical services. WAT, Waters Corporation, is a specialized innovator in liquid chromatography, mass spectrometry, and, more recently, diagnostics. This stock comparison is relevant to traders and long-term investors weighing stability and diversification against a more concentrated growth-and-transformation story. Understanding each company's recent performance, catalysts, and market positioning can help clarify where relative strength currently resides.
TMO Overview and Recent Performance
Thermo Fisher Scientific operates across four segments: life sciences solutions, analytical instruments, specialty diagnostics, and laboratory products and biopharma services. Pharma and biotech customers account for roughly 60% of revenue, giving the company broad exposure to drug-development activity worldwide. In recent quarters, Thermo Fisher has delivered steadily improving results, with second-quarter 2026 revenue rising 10% year over year to about $11.99 billion and organic growth of roughly 5%. Management raised full-year revenue and adjusted EPS (earnings per share) guidance, citing strengthening customer activity across end markets.
Recent market activity has reflected this improving fundamental backdrop. The stock has broken out of a lengthy consolidation, and several sell-side analysts raised price targets in recent weeks, pointing to innovation in mass spectrometry and AI-enabled software as well as disciplined capital returns, including a 10% dividend increase and significant share repurchases. Sentiment has also been supported by strategic moves such as the divestiture of its microbiology business and the integration of acquisitions in clinical and bioproduction workflows, though academic and government demand and foreign-currency effects remain watch items.
WAT Overview and Recent Performance
Waters Corporation specializes in analytical instruments, consumables, and software used in pharmaceutical research, food and environmental testing, and materials analysis. Its traditional strength lies in liquid chromatography and mass spectrometry, but the company's profile changed materially when it completed the acquisition of BD's Biosciences and Diagnostic Solutions business in early 2026, a transformative deal that roughly doubled its revenue base and expanded its reach into clinical diagnostics.
Recent results have validated that strategy. First-quarter 2026 revenue surged to about $1.27 billion, with organic constant-currency growth of approximately 11%, and adjusted EPS rose 20% year over year to $2.70. In the second quarter, revenue reached about $1.65 billion with roughly 7% organic growth, and management again raised guidance. Demand has been supported by pharmaceutical instrument-replacement cycles, GLP-1 (glucagon-like peptide-1, a class of drugs used for diabetes and weight management) manufacturing volumes, and PFAS testing applications. The stock rallied sharply on these results, though China-related headwinds and a soft flu season have tempered parts of the newly acquired diagnostics portfolio.
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Head-to-Head Comparison
The clearest contrast between these two stocks is diversification versus focus. Thermo Fisher's scale and four-segment model provide earnings stability and multiple growth levers, from clinical trials to bioproduction, but its size means any single catalyst moves the needle less. Waters is far more concentrated, historically in analytical instruments and now in diagnostics, so its recent acquisition-driven transformation carries both higher upside potential and higher integration risk.
On momentum, both stocks have strengthened in recent months, but for different reasons. Thermo Fisher's advance reflects steady organic execution and raised guidance across a broad portfolio. Waters' rally is more event-driven, tied to delivering on the BD acquisition's revenue and cost synergies. On risk factors, Thermo Fisher faces muted academic and government spending and elevated leverage following deal activity, while Waters must navigate China policy headwinds, acquisition-related accounting charges, and the near-term gap between GAAP (Generally Accepted Accounting Principles) and adjusted results. From a sector-exposure standpoint, both benefit from resilient pharmaceutical R&D (research and development) spending, yet Waters now has proportionally greater exposure to clinical diagnostics, a market with distinct seasonality and reimbursement dynamics.
Tickeron AI Verdict
Based on observable trend consistency, stability, and relative positioning, Tickeron's AI would likely tilt toward Thermo Fisher Scientific in the current environment. Thermo Fisher's broader revenue base, consistent organic growth, rising guidance, and confirmed technical breakout suggest a more durable and less event-dependent trend than Waters' acquisition-driven surge. While Waters' momentum and synergy story are compelling, its concentration and integration-related volatility introduce greater uncertainty. Accordingly, an AI model weighting trend stability and multiple growth catalysts would probably assign higher relative conviction to TMO, while still recognizing WAT's stronger near-term earnings-revision momentum as a meaningful counterweight.
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 Hold 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 88 similar instances where the indicator turned positive. In 62 of the 88 cases, the stock moved higher in the following days. The odds of a move higher are at 70%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for TMO just turned positive on October 16, 2026. Looking at past instances where TMO's MACD turned positive, the stock continued to rise in 28 of 43 cases over the following month. The odds of a continued upward trend are 65%.
Following a +2.15% 3-day Advance, the price is estimated to grow further. Considering data from situations where TMO advanced for three days, in 194 of 310 cases, the price rose further within the following month. The odds of a continued upward trend are 63%.
The Aroon Indicator entered an Uptrend today. In 143 of 246 cases where TMO Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 58%.
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 38 similar instances where the indicator moved out of overbought territory. In 22 of the 38 cases, the stock moved lower in the following days. This puts the odds of a move lower at 58%.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 3 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
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 62%.
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 8 (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 23 (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 65 (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 (4.871) is normal, around the industry mean (64.450). P/E Ratio (37.293) is within average values for comparable stocks, (2.086). 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 76 (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 89, placing this stock better than average.
WAT's RSI Indicator leaves overbought zone
The 10-day RSI Indicator for WAT moved out of overbought territory on September 30, 2026. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 32 instances where the indicator moved out of the overbought zone. In 25 of the 32 cases the stock moved lower in the days that followed. This puts the odds of a move down at 78%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 43 of 69 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 62%.
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 63%.
WAT broke above its upper Bollinger Band on October 21, 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.
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 56 of 93 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 60%.
The Moving Average Convergence Divergence (MACD) for WAT just turned positive on October 21, 2026. Looking at past instances where WAT's MACD turned positive, the stock continued to rise in 26 of 45 cases over the following month. The odds of a continued upward trend are 58%.
Following a +5.34% 3-day Advance, the price is estimated to grow further. Considering data from situations where WAT advanced for three days, in 175 of 277 cases, the price rose further within the following month. The odds of a continued upward trend are 63%.
The Aroon Indicator entered an Uptrend today. In 119 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%.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 2 (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 12 (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 77 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. WAT’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 89, placing this stock better than average.
The Tickeron Seasonality Score of 85 (best 1 - 100 worst) indicates that the company is significantly 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 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.
The Tickeron Valuation Rating of 90 (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 (2.958) is normal, around the industry mean (64.450). WAT has a moderately high P/E Ratio (114.942) as compared to the industry average of (2.086). 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).
TMO | WAT | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 39 | 87 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 65 Fair valued | 90 Overvalued | |
PROFIT vs RISK RATING 1..100 | 76 | 77 | |
SMR RATING 1..100 | 60 | 89 | |
PRICE GROWTH RATING 1..100 | 8 | 12 | |
P/E GROWTH RATING 1..100 | 23 | 2 | |
SEASONALITY SCORE 1..100 | 50 | 85 |
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 (65) in the Medical Specialties industry is in the same range as WAT (90). This means that TMO’s stock grew similarly to WAT’s over the last 12 months.
TMO's Profit vs Risk Rating (76) in the Medical Specialties industry is in the same range as WAT (77). This means that TMO’s stock grew similarly to WAT’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 (8) in the Medical Specialties industry is in the same range as WAT (12). This means that TMO’s stock grew similarly to WAT’s over the last 12 months.
WAT's P/E Growth Rating (2) in the Medical Specialties industry is in the same range as TMO (23). This means that WAT’s stock grew similarly to TMO’s over the last 12 months.
| TMO | WAT | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 58% | 2 days ago 78% |
| Stochastic ODDS (%) | 2 days ago 57% | 2 days ago 62% |
| Momentum ODDS (%) | 2 days ago 70% | 2 days ago 60% |
| MACD ODDS (%) | 2 days ago 65% | 2 days ago 58% |
| TrendWeek ODDS (%) | 2 days ago 62% | 2 days ago 65% |
| TrendMonth ODDS (%) | 2 days ago 62% | 2 days ago 64% |
| Advances ODDS (%) | 2 days ago 63% | 2 days ago 63% |
| Declines ODDS (%) | 4 days ago 62% | 4 days ago 63% |
| BollingerBands ODDS (%) | 2 days ago 57% | 2 days ago 71% |
| Aroon ODDS (%) | 2 days ago 58% | 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 4 TA indicator(s) are bullish while WAT’s TA Score has 4 bullish TA indicator(s).
- TMO’s TA Score: 4 bullish, 4 bearish.
- WAT’s TA Score: 4 bullish, 4 bearish.
Price Growth
TMO (@Medical Specialties) experienced а +3.09% price change this week, while WAT (@Medical Specialties) price change was +4.78% for the same time period.
The average weekly price growth across all stocks in the @Medical Specialties industry was -3.37%. For the same industry, the average monthly price growth was -6.75%, and the average quarterly price growth was +42.26%.
Reported Earning Dates
TMO is expected to report earnings on Feb 04, 2027.
WAT is expected to report earnings on Nov 03, 2026.
Industries' Descriptions
@Medical Specialties (-3.37% 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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