28.03 +0.41 (+1.45%) Sell

Looking to invest in PK? Consider it, because it ranked better than it's peers

13 min read

PARK HOTELS & RESORTS INC. ranked among the best performers on Tuesday. It delivered +1.45% to close at 28.03. On a day when the overall market breadth was 34%, it closed higher than 18% of the market. In comparison, the benchmark SP500 index closed today at +0.01%.

[Themes containing PK]

PK showed a strong bearish trend over the last 3 months. During this period PK fell by -15.21% and saw a maximum drawdown of -16.75%. There were 2 short signals during this period that returned a cumulative of +12.02% to investors.


PK has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 4 Jan, 2017 to 2 Mar, 2018. Over the last 1 year 11 months and 14 days, PK underperformed the SP500 index on 46% days. Which indicates that on days PK underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months PK was mostly loss making and delivered on average -0.25% per day. It's best return during this period (of +4.05%) was on Wednesday, 7 Nov, 2018. While it's worst loss in the same period (of -4.23%) was on Monday, 17 Dec, 2018. The longest stort-term trend during this period was 5 losing days, which started on 9 Oct, 2018 and ended on 15 Oct, 2018. This bearish trend lost -7.25% of investor capital.

During the last year PK had 7 profitable months and 5 loss making months. PK returned profits in fewer months than SP500 index. PK significantly outperformed SP500 index in May 2018, when it returned +11.95% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. PK 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 PK and SP500 index significantly outperform during months when quarterly/annual results are announced.

"Investors must keep in mind that there's a difference between a good company and a good stock. After all, you can buy a good car but pay too much for it .

PK 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 PK's volatility from 1 Oct, 2018 to 2 Nov, 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 PK has significant positive skewness in it's return distribution. This indicates that investors can expect PK to recover from drawdowns quickly. Which makes PK 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 PK. Therefore, SP500 must receive a lower allocation than PK in your portfolio. SP500 index usually has shorter drawdown period than PK.

Based on your interest in PK you may find it interesting to know that ABMD and RHT are both mid caps that have shown remarkable performance and deserve to be on every investors' watchlist.

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