41.82 -0.36 (-0.85%) Sell

BWXT is a falling knife, continues to bleed every investor trying to catch it

13 min read

BWX TECHNOLOGIES, INC. was among the worst performers on Friday. It fell by -0.85% to close at 41.82. It is currently trading -41% below it's 52 week high of 70.94.

[Themes containing BWXT]

BWXT is currently in a bearish trend. The current bearish signal has generated a profit of +33.77% for investors in the last three months.


BWXT has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 12 Feb, 2016 to 20 Apr, 2018. Over the last 2 years 11 months and 10 days, BWXT outperformed the SP500 index on 53% days.

During the last three months BWXT was mostly loss making and delivered on average -0.58% per day. It's best return during this period (of +3.97%) was on Wednesday, 28 Nov, 2018. While it's worst loss in the same period (of -23.75%) was on Wednesday, 7 Nov, 2018. The longest stort-term trend during this period was 7 losing days, which started on 3 Oct, 2018 and ended on 11 Oct, 2018. This bearish trend lost -9.74% of investor capital.

During the last year BWXT had 5 profitable months and 7 loss making months. BWXT returned profits in fewer months than SP500 index. BWXT was also a more risky investment than SP500 index as it's worst month in the last year, Nov 2018, returned -22.65% compared to -7.28% returned by SP500 index in Oct 2018. BWXT had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from Oct 2018 to Dec 2018) during which period it delivered -37.46%. It is interesting to note that both BWXT and SP500 index significantly outperform during months when quarterly/annual results are announced.

"There is no one-decision stocks

BWXT is currently seeing overall fall in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in BWXT's volatility from 17 Sep, 2018 to 13 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 25 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that BWXT has significant positive skewness in it's return distribution. This indicates that investors can expect BWXT to recover from drawdowns quickly. Which makes BWXT a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

SP500 index has more chance of extreme outcomes than BWXT. Therefore, SP500 must receive a lower allocation than BWXT in your portfolio. BWXT usually has shorter drawdown period than the SP500 index.

Based on your interest in BWXT you may find it interesting to know that OPNT is highly volatile and investors investing in it must take extreme caution. Consider either reducing your exposure to OPNT or sufficiently diversifying your portfolio.

Want to improve your Portfolio's performance?

Spotalpha's Portfolio optimizer is all you need to improve your returns and reduce your risk.
Optimize Portfolio NOW
Symbol Price {{retType}} | Tr.
{{detail.symbol}} {{detail.close}} {{detail.priceChange}}  {{detail.pctChange}}%  {{}} {{detail.trend}} 
If you liked what you read here ...

... we have a small favour to ask. Help us bring the power of algorithmic trading strategies to individual investors.

All content in this article was automatically generated by algorithms. This ensures that there are no human biases in the analysis provided. This approach to investing is not new and has been around for more than three decades. Yet, it has been available to only the most affluent or elite investors leaving individual investors to trade on emotions (such as fear and greed), intuition and poor analysis from third-parties. We want to change this.

We want to empower investors with all the tools and analysis required by them to make a rational investment decision.

If you found Spotalpha useful, consider making a contribution. For as little as $5 you can support our efforts and it takes less than a minute. Thank you. Contribute
Share with friends   WhatsApp   Facebook   Twitter