September 26, 2024
Top 10 Stock Fluor Strong Buy Recommendation

Latest Research

For each investment strategy, we provide you with more detailed analysis and our recommendation. You see the ranks of the top 10 stocks ranked by that particular investment strategy (360° View, Sentiment, Value, Growth, Safety and Combined Financial Performance).

360° View: Obermatt 360° View Fluor Strong Buy

360 METRICS	September 26, 2024
VALUE
VALUE	53
GROWTH
GROWTH	67
SAFETY
SAFETY	67
SENTIMENT
SENTIMENT	71
360° VIEW
360° VIEW	85

ANALYSIS: With an Obermatt 360° View of 85 (better than 85% compared with alternatives) for 2024, overall professional sentiment and financial characteristics for the stock Fluor are very positive. The 360° View is based on consolidating four consolidated indicators, with all four indicators above average for Fluor. The consolidated Value Rank has an attractive rank of 53, which means that the share price of Fluor is on the lower side compared with the typical size in indicators such as revenues, profits, and invested capital. This means the stock price is lower than for 53% of alternative stocks in the same industry. The consolidated Growth Rank has a good rank of 67, which means that the company experiences above-average growth momentum when looking at financial metrics such as revenue, profit, and invested capital growth as well as stock returns. The company is also safely financed with a Safety rank of 67. Finally, professional market sentiment is above average compared with other stock investment alternatives with a Sentiment Rank of 71. ...read more

RECOMMENDATION: With a consolidated 360° View of 85, Fluor is better positioned than 85% of all alternative stock investment opportunities based on the Obermatt Method. As all consolidated Obermatt Ranks exhibit excellent performance, such as good value (Value Rank of 53), above-average growth (Growth Rank of 67), safe financing practices (Safety Rank of 67), and a positive market sentiment in the professional investor community (Sentiment Rank of 71), it is a solid stock investment where the risk of paying too much for the shares is limited and disappointments are less likely to occur, unless information not publicly available. High-Value Ranks sometimes indicate that the company's future is challenging. If they are safely financed and have above average growth, and are still a good value, it may indicate that this will not continue. We recommend evaluating whether the future of Fluor is as difficult as the stock’s low price, despite what good growth and safe financing practice suggest. Since the professional community is optimistic, you might have less to worry about, and the stock is just not sufficiently visible, which may indicate good timing right now. ...read more

---

Sentiment Strategy: Professional Market Sentiment for Fluor positive

SENTIMENT METRICS	September 26, 2024
ANALYST OPINION
ANALYST OPINION	49
OPINIONS CHANGE
OPINIONS CHANGE	50
PRO HOLDINGS
PRO HOLDINGS	91
MARKET PULSE
MARKET PULSE	42
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	71

ANALYSIS: With an Obermatt Sentiment Rank of 71 (better than 71% compared with alternatives), overall professional sentiment and engagement for the stock Fluor is above average. The Sentiment Rank is based on consolidating four sentiment indicators, with half of the metrics below and half above average for Fluor. Analyst Opinions are at a rank of 49 (worse than 51% of alternative investments), which means that currently, stock research analysts tend to warn against investing in the stock of the company. But they are changing their opinions! Analyst Opinions Change has a rank of 50, which means that stock research experts are more positive in their investment recommendations in the company. In other words, they are getting more optimistic of stock investments in Fluor. More encouragingly, the Professional Investors rank is 91, which means that professional investors hold more stock in this company than in 91% of alternative investment opportunities. Pros tend to favor investing in this company. But Market Pulse is on the lower side with a rank of 42, which means that the current professional news and professional social networks are on the negative side when discussing this company (more negative news than for 58% of competitors). ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 71 (more positive than 71% compared with investment alternatives), Fluor has a reputation among professional investors that is above-average compared with that of its competitors. The sentiment signals are mixed for Fluor. While analysts and the news channels are negative, there is a change in what analysts think. Above-average institutional investors in this company support them. Sentiment signals remain mixed with analysts and news channels pessimistic, though improving, and professional investors above average. ...read more

---

Value Strategy: Fluor Stock Price Value better than average

VALUE METRICS	September 26, 2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	90
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	80
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	33
DIVIDEND YIELD
DIVIDEND YIELD	1
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	53

ANALYSIS: With an Obermatt Value Rank of 53 (better than 53% compared with alternatives), Fluor shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half are above average for Fluor. Price-to-Sales (P/S) is 90, which means that the stock price compared with what market professionals expect for future sales is lower than for 90% of comparable companies, indicating a good value concerning Fluor's revenue size. The same is valid for expected Price-to-Profits (or Price / Earnings, P/E), more favorable than for 80% of alternatives. It is also positive for expected dividend yields with a Dividend Yield rank of 1 (dividends are expected to be higher than for 1% of other stocks). But, compared with other companies in the same industry, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is higher than average, making the stock more expensive. Only 67% of all competitors have an even higher price compared with book capital which puts the Price-to-Capital Rank for Fluor to 33. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 53, is a buy recommendation based on Fluor's stock price compared with the company's operational size and dividend yields. A low level of book capital means that the company has a business that is leaner on assets than its competitors. For instance, the company could be leasing its production facilities, or be more focussed on intellectual property, such as its brand and software, which is less visible in its book capital. If that is the case, the low Dividend Yield is also explained as such companies tend to invest their income into market development. The other good value ranks for Sales and Profits are encouraging indicators for the stock price value. ...read more

---

Growth Strategy: Fluor Growth Momentum good

GROWTH METRICS	September 26, 2024
REVENUE GROWTH
REVENUE GROWTH	64
PROFIT GROWTH
PROFIT GROWTH	46
CAPITAL GROWTH
CAPITAL GROWTH	45
STOCK RETURNS
STOCK RETURNS	59
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	67

ANALYSIS: With an Obermatt Growth Rank of 67 (better than 67% compared with alternatives), Fluor shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Fluor. Sales Growth has a rank of 64 which means that currently professionals expect the company to grow more than 64% of its competitors. Stock Returns are also above average with a rank of 59. But Capital Growth has only a rank of 45, which means that currently professionals expect the company to grow its invested capital less than 55% of its competitors. Profit Growth is also low, with a rank of only 46, which means that, currently, professionals expect the company to grow its profits below average. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 67, is a buy recommendation for growth and momentum investors. This is a surprising picture, as the messages from the operating growth indicators of revenues, profits, and invested capital are mixed, while stock returns are above average. It may indicate new intellectual properties, such as brand improvement or a strong market position that shows in revenues but not in the capital. The low profit-growth rate may indicate an early phase where costs are still high, and revenues don't fully cover upfront investments or fixed costs. The positive investor outlook with a 59% peer outperformance is reaffirmed in this case which may be a good sign for an investment into a well-protected high-growth company. This fact needs to be confirmed by researching the company website and press. ...read more

---

Safety Strategy: Fluor Debt Financing Safety above-average

SAFETY METRICS	September 26, 2024
LEVERAGE
LEVERAGE	48
REFINANCING
REFINANCING	72
LIQUIDITY
LIQUIDITY	49
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	67

ANALYSIS: With an Obermatt Safety Rank of 67 (better than 67% compared with alternatives), the company Fluor has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Fluor is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Fluor and the other two below average. Refinancing is at 72, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 72% of its competitors. But Leverage is high with a rank of 48, meaning the company has an above-average debt-to-equity ratio. It has more debt than 52% of its competitors. Liquidity is also on the riskier side with a rank of 49, meaning the company generates less profit to service its debt than 51% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 67 (better than 67% compared with alternatives), Fluor has a financing structure that is safer than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for Fluor are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. ...read more

---

Combined financial peformance: Fluor Top Financial Performance

COMBINED PERFORMANCE	September 26, 2024
VALUE
VALUE	53
GROWTH
GROWTH	67
SAFETY
SAFETY	49
COMBINED
COMBINED	80

ANALYSIS: With an Obermatt Combined Rank of 80 (better than 80% compared with investment alternatives), Fluor (Construction & Engineering, USA) shares have much better financial characteristics than comparable stocks. Shares of Fluor are a good value (attractively priced) with a consolidated Value Rank of 53 (better than 53% of alternatives), show above-average growth (Growth Rank of 67), and are safely financed (Safety Rank of 67), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 80, is a strong buy recommendation based on Fluor's financial characteristics. As the company Fluor's key financial metrics all exhibit excellent performance, such as good value (Obermatt Value Rank of 53), above-average growth (Obermatt Growth Rank of 67), and indicate that the company is safely financed (Obermatt Safety Rank of 67), it is a solid stock investment where the risk of paying too much for the share is limited, unless the company has a bleak future. Such good financial performance can indicate that the company's future might actually be challenging, as it may be difficult to maintain the good performance. If they are safely financed and have been growing above average, and are still a good value, it means that the market is keeping prices low, for a reason which may become clearer over time. We recommend evaluating the future of Fluor. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. ...read more

Obermatt Portfolio Performance
We’re so convinced about our research, that we buy our stock tips.
See the performance of the Obermatt portfolio.