PNC FINANCIAL SERVICES GROUP, INC.

122.46 -1.77 (-1.45%) Sell

Prayers for PNC investors as it delivered massive losses

13 min read

PNC FINANCIAL SERVICES GROUP, INC. was among the worst performers on Tuesday. It delivered -1.45% to close at 122.46. On a day when the overall market breadth was 35%, it closed higher than 8% of the market. In comparison, the benchmark SP500 index closed today at -0.0004%.

[Themes containing PNC]

Buy-and-Hold investors in PNC experienced a maximum drawdown of -19.08% over the last three months. It delivered -13.34% during this strong bearish 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 +9.49%.

Trend

PNC has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 18 Jul, 2016 to 21 Feb, 2018. Over the last 2 years 11 months and 7 days, PNC outperformed the SP500 index on 52% days.

During the last three months PNC was mostly loss making and delivered on average -0.21% per day. It's best return during this period (of +2.99%) was on Wednesday, 31 Oct, 2018. While it's worst loss in the same period (of -5.58%) was on Friday, 12 Oct, 2018. The longest stort-term trend during this period was 9 profitable days, which started on 29 Oct, 2018 and went on till 8 Nov, 2018. This bullish trend returned +11.78% to investors.

The last 12 months saw PNC's investors making profits in 3 months and incurring losses in 9 months. PNC was less consistent in delivering monthly returs than SP500 index. PNC was also a more risky investment than SP500 index as it's worst month in the last year, Dec 2018, returned -9.81% compared to -7.28% returned by SP500 index in Oct 2018. PNC had a longer winning streak of losing months than SP500 index. It went down in 5 straight months (from Feb 2018 to Jun 2018) during which period it delivered -13.43%. It is interesting to note that both PNC and SP500 index significantly outperform during months when quarterly/annual results are announced.

The stock market is a discounter of all known information.
-- Kenneth Fisher

PNC 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 PNC's volatility from 18 Sep, 2018 to 11 Dec, 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 PNC has significant positive skewness in it's return distribution. This indicates that investors can expect PNC to recover from drawdowns quickly. Which makes PNC a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

On a general note (since you are interested in PNC), HQY is a small cap that deserves to be closely tracked for investment opportunities.

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