NORTHWEST BANCSHARES, INC.

16.78 -0.07 (-0.42%) Sell

Search for alternative investments is on for NWBI investors as it ranked worse than it's peers

13 min read

NORTHWEST BANCSHARES, INC. performed worse than the broader market on Monday. It fell by -0.42% to close at 16.78. It is currently trading -9% below it's 52 week high of 18.51.

[Themes containing NWBI]

NWBI is currently in a bearish trend. Over the last three months 2 bearish signals have generated a profit of +5.27% for investors.

Trend

NWBI has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 8 Dec, 2016 to 2 Oct, 2018. Over the last 2 years 11 months and 10 days, NWBI underperformed the SP500 index on 48% days. Which indicates that on days NWBI underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months NWBI was mostly loss making and delivered on average -0.1% per day. It's best return during this period (of +2.84%) was on Thursday, 25 Oct, 2018. While it's worst loss in the same period (of -4.47%) was on Tuesday, 4 Dec, 2018. The longest stort-term trend during this period was 6 profitable days, which started on 1 Nov, 2018 and went on till 8 Nov, 2018. This bullish trend returned +6.58% to investors.

During the last year NWBI had 8 profitable months and 4 loss making months. Profitable number of months of NWBI and SP500 index were the same. NWBI significantly outperformed SP500 index in Nov 2018, when it returned +11.09% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. NWBI and SP500 index, both had periods of 6 consecutive profitable months. It is interesting to note that both NWBI and SP500 index significantly outperform during months when quarterly/annual results are announced.

"Everything is always feasible if you run a corporate finance exercise: you can always try to come out with a justification on how things could work. But the real issue is to say how do you translate that into practice.

NWBI 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 NWBI's volatility from 25 Sep, 2018 to 25 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 19 Sep, 2018 to 29 Oct, 2018.

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

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

On a general note (since you are interested in NWBI), if you are evaluating NWBI as an investment candidate, then you should read about EXPD which has delivered similar performance and can help diversify your portfolio.

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