FLOWSERVE CORP

43.47 -1.46 (-3.36%) Sell

Doubt in the minds of FLS investors as it destroyed investor wealth

13 min read

FLOWSERVE CORP delivered massive losses today. It fell by -3.36% to close at 43.47. It's recent 5 day performance has been +0.63%, +0.29%, -1.83%, -1.3% and -0.95%.

[Themes containing FLS]

FLS is currently in a bearish trend. Over the last three months 2 bearish signals have generated a profit of +9.68% for investors.

Trend

FLS has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 8 Jun, 2016 to 19 Jun, 2018. Over the last 2 years 11 months and 9 days, FLS underperformed the SP500 index on 48% days. Which indicates that on days FLS underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months FLS was mostly loss making and delivered on average -0.36% per day. It's best return during this period (of +7.83%) was on Thursday, 8 Nov, 2018. While it's worst loss in the same period (of -5.25%) was on Friday, 9 Nov, 2018. The longest stort-term trend during this period was 8 profitable days, which started on 30 Oct, 2018 and went on till 8 Nov, 2018. This bullish trend returned +17.99% to investors.

During the last year FLS had 7 profitable months and 5 loss making months. FLS returned profits in fewer months than SP500 index. FLS significantly outperformed SP500 index in Aug 2018, when it returned +17.57% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. FLS had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year. It is interesting to note that both FLS and SP500 index significantly outperform during months when quarterly/annual results are announced.

"The real measure of your wealth is how much you'd be worth if you lost all your money

FLS 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 FLS's volatility from 3 Oct, 2018 to 9 Nov, 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 FLS has positive skewness in it's return distribution. This indicates that investors can expect FLS to make attempts to recover from drawdowns quickly. Which makes FLS a good candidate for momentum based trading on short-term bullish trends or counter-trends.

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

On a general note (since you are interested in FLS), HEAR has performed really well this year and deserves to be closely tracked for investment opportunities.

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