Thermo Fisher Scientific Stock Plunges 15% to 52-Week Low on Tariff Concerns

Thermo Fisher Scientific's stock price has been affected by several key factors recently. Notably, the company experienced a negative market reaction following its first quarter earnings report, primarily due to concerns about its exposure to new tariffs and shifting policy landscapes.

The strategy of buying TMO shares after they reached a recent low and holding for 1 week resulted in poor performance over the past five years. The strategy yielded a return of -30.69%, significantly underperforming the benchmark return of 56.81%. With an excess return of -87.51% and a CAGR of -13.97%, this strategy failed to capitalize on broader market gains. Moreover, it exhibited a high maximum drawdown of -40.82%, indicating significant downside risk, and a Sharpe ratio of -0.56, reflecting inadequate risk-adjusted returns.

Thermo Fisher's stock has hit a new 52-week low multiple times, with recent lows at $385.54 and $390.45, which are significant technical indicators of a downturn. These lows reflect ongoing challenges in the global life sciences and biotechnology industries, including trade tensions and supply chain fragility, contributing to the stock's decline.