Trade-Ideas LLC identified

Fluor

(

FLR

) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Fluor as such a stock due to the following factors:

  • FLR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $72.8 million.
  • FLR has traded 891,158 shares today.
  • FLR traded in a range 244.3% of the normal price range with a price range of $3.48.
  • FLR traded above its daily resistance level (quality: 20 days, meaning that the stock is crossing a resistance level set by the last 20 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in FLR with the Ticky from Trade-Ideas. See the FREE profile for FLR NOW at Trade-Ideas

More details on FLR:

TST Recommends

Fluor Corporation, through its subsidiaries, provides engineering, procurement, construction, fabrication and modularization, commissioning and maintenance, and project management services worldwide. The stock currently has a dividend yield of 1.8%. FLR has a PE ratio of 1. Currently there are 10 analysts that rate Fluor a buy, 1 analyst rates it a sell, and 6 rate it a hold.

The average volume for Fluor has been 1.6 million shares per day over the past 30 days. Fluor has a market cap of $6.4 billion and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 1.28 and a short float of 5.2% with 4.33 days to cover. Shares are down 23.2% year-to-date as of the close of trading on Thursday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Fluor as a

hold

. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, poor profit margins and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Construction & Engineering industry. The net income increased by 90.9% when compared to the same quarter one year prior, rising from $77.79 million to $148.51 million.
  • The current debt-to-equity ratio, 0.32, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.15, which illustrates the ability to avoid short-term cash problems.
  • FLR, with its decline in revenue, slightly underperformed the industry average of 8.1%. Since the same quarter one year prior, revenues slightly dropped by 8.4%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • The gross profit margin for FLUOR CORP is currently extremely low, coming in at 7.09%. It has decreased from the same quarter the previous year. Regardless of the weak results of the gross profit margin, the net profit margin of 3.08% is above that of the industry average.
  • Net operating cash flow has decreased to $164.91 million or 31.00% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.