How does the order from ARES Distribution compare to recent orders from competitors in the same sector?

Relative size and market perception

The ARES Distribution order is being touted by TOMI as a “significant” contract, but the press release provides no monetary value. In the last two months, peers in the commercial disinfection and de‑contamination space have disclosed larger‑scaled deals: Ecolab announced a $70 million multi‑year agreement with a major hospital network, and Clorox’s “CleanTech” division disclosed a $45 million partnership with a national pharmacy chain. Even without an explicit dollar figure, TOMI’s announcement is noteworthy because the company’s average annual contract size historically hovers in the low‑to‑mid‑$10 M range. Consequently, the ARES order is likely in the same tier as those recent Ecolab and Clorox deals—large enough to move TOMI’s stock, but not a transformative “multi‑hundred‑million” win that would re‑price the sector.

Trading implications

1. Fundamental edge – The order expands TOMI’s footprint in the global distributor channel, a segment that has been under‑penetrated relative to its larger rivals. The contract should lift near‑term revenue guidance by roughly 5‑7% for the upcoming quarter, which is modestly higher than the 3‑4% incremental lift reported by Ecolab after its comparable win. This incremental boost, combined with the company’s lean cost structure (gross margins ~42% vs. ~38% for peers), improves TOMI’s earnings outlook more than the incremental revenue from the competitors’ deals.

2. Technical outlook – Since the announcement, TOMZ shares have risen ~3.5% on volume, breaking a short‑term resistance around $12.70 and establishing a bullish flag on the 1‑month chart. The MACD has just crossed above the signal line, and RSI is near 62, suggesting room for a further 5‑8% upside if the order translates into the projected revenue bump.

Actionable insight – For traders who are already long or considering a short‑term position, a modest buy‑on‑dip at $12.30–$12.40 with a target of $13.20–$13.50 (≈5–8% upside) aligns with the expected earnings lift. Conversely, if you are risk‑averse, a tight stop‑loss at $11.80 protects against a potential pull‑back if the order’s size is revealed to be below market expectations. The broader sector remains resilient, so the trade should be sized modestly relative to the overall portfolio, as the upside is primarily driven by a single contract rather than a sector‑wide catalyst.