BEAZER HOMES USA INC

10.68 -0.09 (-0.84%) Buy

BZH investors treading cautiously as performance is muted

13 min read

BEAZER HOMES USA INC delivered massive losses today. It lost -0.84% to close at 10.68. During the last week it lost -1.57% and saw a maximum drawdown of -1.57%.

[Themes containing BZH]

Buy-and-Hold investors in BZH experienced a maximum drawdown of -31.54% over the last three months. It lost -11.22% during this strong down trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals. The net profit from Short signals was +9.64%.

Trend

BZH has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 9 days, BZH underperformed the SP500 index on 49% days. Which indicates that on days BZH underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months BZH was mostly loss making and delivered on average -0.08% per day. It's best return during this period (of +30.65%) was on Tuesday, 13 Nov, 2018. While it's worst loss in the same period (of -8.36%) was on Wednesday, 24 Oct, 2018. There was initially a bearish trend during this period which started on 20 Sep, 2018 and went on till 28 Sep, 2018. The trend delivered -13.7% losses to investors. This was followed by a bullish trend that started on 21 Nov, 2018 and ended on 3 Dec, 2018. This bullish trend delivered +14.8% to investors.

BZH had 3 profitable and 9 loss making months over the last year. During the last year, BZH underperformed SP500 index on monthly return basis. BZH significantly outperformed SP500 index in Nov 2018, when it returned +27.81% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. BZH and SP500 index, both had periods of 2 consecutive losing months.

What we really want to do is what we are really meant to do. When we do what we are meant to do, money comes to us, doors open for us, we feel useful, and the work we do feels like play to us.
-- Julia Cameron

BZH is becoming less volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in BZH's volatility from 18 Sep, 2018 to 24 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 14 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that BZH has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.

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

Based on your interest in BZH you may find it interesting to know that NIHD has shown remarkable performance this year and deserves to be on every investors' watchlist.

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