191.19 +0.75 (+0.39%) Buy

Don't sell WAT now, it delivered great returns

13 min read

WATERS CORP delivered stellar performance today. It gained +0.39% to close at 191.19. It's recent 5 day performance has been +0.34%, +0.13%, +0.32%, -2.55% and -0.8%.

[Themes containing WAT]

WAT showed a down trend over the last 3 months. During this period WAT returned -2.54% and saw a maximum drawdown of -11.1%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in WAT till volatility reduces and a clear trend emerges.


WAT has been underperforming the SP500 index in recent time, after having outperformed till 20 Mar, 2018. Over the last 2 years 11 months and 9 days, WAT outperformed the SP500 index on 56% days.

WAT was profitable on 52% days in the last three months. During this time, it delivered on average -0.03% per day. It delivered it's best daily return of +4.7%, during this period, on Thursday, 25 Oct, 2018. There was initially a bearish trend during this period which started on 28 Sep, 2018 and went on till 10 Oct, 2018. The trend delivered -9.08% losses to investors. This was followed by a bullish trend that started on 29 Oct, 2018 and ended on 8 Nov, 2018. This bullish trend delivered +9.09% to investors.

On monthly basis, WAT delivered profits and losses in equal number of months. WAT delivered profits less regularly than SP500 index. WAT significantly outperformed SP500 index in Jan 2018, when it returned +10.18% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. WAT 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 WAT and SP500 index significantly outperform during months when quarterly/annual results are announced.

When you stop chasing the wrong things you give the right things a chance to catch you.
-- Lolly Daskal

WAT is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in WAT's volatility from 3 Oct, 2018 to 25 Oct, 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 WAT has significant positive skewness in it's return distribution. This indicates that investors can expect WAT to recover from drawdowns quickly. Which makes WAT 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 WAT. Therefore, SP500 must receive a lower allocation than WAT in your portfolio. WAT usually has shorter drawdown period than the SP500 index.

Based on your interest in WAT you may find it interesting to know that AMRH, APRN and AYTU have all shown remarkable performance and qualify to be on every investor's watchlist.

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