Fluor has seen profits zoom higher recently and it's just completing a cup-with-handle base. Now, can the provider of construction and maintenance services to the oil and gas industry capitalize on its position? On Tuesday, Fluor stock hit an important technical milestone, seeing its Relative Strength (RS) Rating jump into the 90-plus percentile with an improvement to 91, up from 88 the day before.
The 91 RS Rating means that Fluor stock has outperformed 91% of all stocks over the past year. That rating easily tops IBD's requirement for actionable stocks. The market's biggest winners tend to have an RS Rating north of 80 as they launch their biggest price moves.
Fluor Stock In Demand By Big Money Investors
Among other key ratings, Fluor stock has a 77 Composite Rating and a so-so 65 EPS Rating, in large part because of weak earnings last year as the oil industry shut down during the early part of the pandemic. One standout rating — its A Accumulation/Distribution Rating on an A+ to E scale demonstrates that institutional investors are eagerly buying its shares.
Top and bottom line growth for the Irving, Texas-based company moved higher last quarter. Earnings were up 64%, on the heels of a 268% earnings surge the prior quarter. Revenue in its most recent quarter slid 10% year over year to $3.1 billion. You don't like to see a company's sales drop but it was the best showing in a year, indicating an upward trend.
As mentioned earlier, Fluor stock is trying to complete a cup with handle with a 24.12 buy point. See if it can break out in heavy trading.
Fluor stock earns the No. 5 rank among its peers in the Building-Heavy Construction industry group. Sterling Construction and KBR are also among the top 5 highly rated stocks within the group.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength. IBD's proprietary RS Rating measures technical performance by using a 1 (worst) to 99 (best) score that shows how a stock's price action over the last 52 weeks matches up against all other stocks in our database.