17.25 -0.11 (-0.63%) Sell

Waiting to invest in STL? Avoid at the moment as it ranked among the worst performers

13 min read

STERLING BANCORP ranked among the worst performers on Thursday. It delivered -0.63% to close at 17.25. It is currently trading -34% below it's 52 week high of 26.25.

[Themes containing STL]

STL showed a strong bearish trend over the last 3 months. During this period STL delivered -22.12% and saw a maximum drawdown of -26.49%. There were 2 short signals during this period that returned a cumulative of +19.09% to investors.


STL has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 1 Mar, 2017 to 25 Oct, 2018. Over the last 2 years 11 months and 9 days, STL underperformed the SP500 index on 48% days. Which indicates that on days STL underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months STL delivered profits on 50% days. However, it still managed to end this period in a loss. It's best return during this period (of +3.13%) was on Wednesday, 3 Oct, 2018. While it's worst loss in the same period (of -10.02%) was on Wednesday, 24 Oct, 2018. The longest stort-term trend during this period was 5 losing days, which started on 18 Oct, 2018 and ended on 24 Oct, 2018. This bearish trend lost -18.95% of investor capital.

The last 12 months saw STL's investors making profits in 5 months and incurring losses in 7 months. STL was less consistent in delivering monthly returs than SP500 index. STL was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -16.91% compared to -7.28% returned by SP500 index in Oct 2018. STL had a shorter streak of profitable months than SP500 index. It only went up in 2 straight months during the last year. It is interesting to note that both STL and SP500 index significantly outperform during months when quarterly/annual results are announced.

"We ignore outlooks and forecasts.. we're lousy at it and we admit it .. everyone else is lousy too, but most people won't admit it.

STL 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 STL's volatility from 18 Sep, 2018 to 24 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 25 Sep, 2018 to 29 Oct, 2018.

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

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

On a general note (since you are interested in STL), three small cap instruments that deserve special mention are EHC, HQY and BURL. They have all outperformed the market and must be closely watched for investment opportunities.

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