24.59 -0.27 (-1.09%) Sell

Are you evaluating investing in FITB? Avoid as it ranked among the worst performers

13 min read

FITB ranked among the worst performers today. On a longer term basis, investors in FIFTH THIRD BANCORP made -0.03% per day. Tuesday's performance of -1.09% was a significant underperformance compared to it's daily average.

[Themes containing FITB]

FITB showed a strong down trend over the last 3 months. During this period FITB lost -14.53% and saw a maximum drawdown of -17.46%. There were 4 short signals during this period that returned a cumulative of +2.92% to investors.


FITB has been underperforming the SP500 index in recent time, after having outperformed till 15 May, 2018. Over the last 2 years 11 months and 7 days, FITB underperformed the SP500 index on 49% days. Which indicates that on days FITB underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months FITB was mostly loss making and delivered on average -0.24% per day. It's best return during this period (of +3.6%) was on Thursday, 25 Oct, 2018. While it's worst loss in the same period (of -6.46%) was on Tuesday, 4 Dec, 2018. There was initially a bearish trend during this period which started on 21 Sep, 2018 and went on till 1 Oct, 2018. The trend delivered -6.85% losses to investors. This was followed by a bullish trend that started on 29 Oct, 2018 and ended on 6 Nov, 2018. This bullish trend delivered +7.95% to investors.

FITB had 4 profitable and 8 loss making months over the last year. During the last year, FITB underperformed SP500 index on monthly return basis. FITB was also a more risky investment than SP500 index as it's worst month in the last year, Dec 2018, returned -11.96% compared to -7.28% returned by SP500 index in Oct 2018. FITB had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from Aug 2018 to Oct 2018) during which period it delivered -8.58%. It is interesting to note that both FITB and SP500 index significantly outperform during months when quarterly/annual results are announced.

Try to save something while your salary is small; It's impossible to save after you begin to earn more.
-- Jack Benny

FITB is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in FITB's volatility from 18 Sep, 2018 to 24 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 13 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that FITB has significant positive skewness in it's return distribution. This indicates that investors can expect FITB to recover from drawdowns quickly. Which makes FITB 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 FITB. Therefore, SP500 must receive a lower allocation than FITB in your portfolio. SP500 index usually has shorter drawdown period than FITB.

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

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