NewroadTrader

Buy $FLR - NRPicks Feb 14

Long
NYSE:FLR   Fluor Corporation
Fluor Corporation, through its subsidiaries, provides engineering, procurement, construction, fabrication and modularization, operation, maintenance and asset integrity and project management services worldwide. It operates through six segments: Energy and Chemicals; Mining and Industrial; Infrastructure and Energy; Government; Diversified Services; and Other.
The construction sector has been one of the hardest hit by the economic crisis due to covid-19. Several projects worldwide were paralyzed and many others that were about to be carried out were postponed, which directly affects the industry. The company's sales this year have been reduced by around 10%, and this year's earnings look unfavorable. The level of debt it manages is consistent with that of its competitors.

Fundamentals:
- Value
- 90.3% estimated net earnings growth over the next 3 years.
- P/B 2.2x VS 2.5x industry.

Technicals:
- Price level above SMA 200, Cross 50 MA
- Williams R% at -77% levels
- RSI (46) Neutral
- +2.7% average upside during the month

An industry correction was presented, the effect on Fluor of -15% from February 9 to 11, which stopped at $17.30. From this point on, the stock has shown a clear change in trend, due to the fact that there is no clear rationale for the correction. In terms of technical indicators, the only one that looks really favorable is Williams R, as the stock has recovered almost 4% from the low of the last correction.

Trade closed: stop reached:
18 feb

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