16.4 -0.3 (-1.86%) Sell

WEN is a falling knife, continues to bleed every investor trying to catch it

13 min read

WEN was among the worst performers today. On a longer term basis, investors in WENDY'S CO made +0.1% per day. Monday's performance of -1.86% was a significant underperformance compared to it's daily average.

[Themes containing WEN]

Buy-and-Hold investors in WEN experienced a maximum drawdown of -9.19% over the last three months. It lost -7.71% during this down trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals.


WEN has been underperforming the SP500 index in recent time, after having outperformed till 23 Nov, 2018. Over the last 2 years 11 months and 10 days, WEN outperformed the SP500 index on 51% days.

WEN returned losses on 51% days in the last three months. During this time, it delivered on average -0.12% per day. It delivered it's best daily return of +3.44%, during this period, on Friday, 9 Nov, 2018. There was initially a bullish trend during this period which started on 24 Sep, 2018 and went on till 26 Sep, 2018. The bullish trend returned +2.25% to investors. This was followed by a bearish trend that started on 27 Sep, 2018 and ended on 2 Oct, 2018. This bearish trend lost -3.4% of investor capital.

WEN had 5 profitable and 7 loss making months over the last year. During the last year, WEN underperformed SP500 index on monthly return basis. WEN significantly outperformed SP500 index in Mar 2018, when it returned +10.03% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. WEN had a shorter streak of profitable months than SP500 index. It only went up in 2 straight months during the last year.

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WEN is becoming less volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in WEN's volatility from 10 Oct, 2018 to 9 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 25 Sep, 2018 to 29 Oct, 2018.

SP500 index has more chance of extreme outcomes than WEN. Therefore, SP500 must receive a lower allocation than WEN in your portfolio.

Based on your interest in WEN you may find it interesting to know that RHT is a mid cap that has shown remarkable performance and deserves to be on every investors' watchlist.

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