BIG LOTS INC ranked among the worst performers on Friday. It fell by -23.08% to close at 31.0. On a day when the overall market breadth was 35%, it closed higher than 70% of the market. In comparison, the benchmark SP500 index closed today at -0.0233%.
BIG is currently in a bearish trend. Over the last three months 3 bearish signals have generated a profit of +20.21% for investors.
BIG has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 15 Aug, 2016 to 7 Dec, 2018. One must note that BIG is currently at it's worst performance to the SP500 index which makes it a bad investment candidate. Over the last 2 years 11 months and 3 days, BIG underperformed the SP500 index on 48% days. Which indicates that on days BIG underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.
BIG returned losses on 51% days in the last three months. During this time, it delivered on average -0.48% per day. It delivered it's worst daily return of -23.08%, during this period, on Friday, 7 Dec, 2018. The longest stort-term trend during this period was 6 profitable days, which started on 21 Nov, 2018 and went on till 29 Nov, 2018. This bullish trend returned +9.06% to investors.
During the last year BIG had 5 profitable months and 7 loss making months. BIG returned profits in fewer months than SP500 index. BIG was also a more risky investment than SP500 index as it's worst month in the last year, Dec 2018, returned -28.83% compared to -7.28% returned by SP500 index in Oct 2018. BIG had a longer winning streak of losing months than SP500 index. It went down in 4 straight months (from Feb 2018 to May 2018) during which period it delivered -35.26%. It is interesting to note that both BIG and SP500 index significantly outperform during months when quarterly/annual results are announced.
Buy at the point of maximum pessimism; sell at the point of maximum optimism.
-- Sir John Templeton
BIG is currently seeing overall increase in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in BIG's volatility from 25 Sep, 2018 to 7 Dec, 2018. While there was a significant surge in the SP500 index's volatility from 10 Sep, 2018 to 29 Oct, 2018.
Advanced/professional short-term investors should note that BIG has significant positive skewness in it's return distribution. This indicates that investors can expect BIG to recover from drawdowns quickly. Which makes BIG a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.
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