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Fluor - AI Stock Analysis
Analysis generated May 29, 2025
Fluor Corporation is a global engineering and construction firm headquartered in Irving, Texas. The company provides engineering, procurement, construction, fabrication, and modularization services globally. Best known for working with clients in diverse industries including oil and gas, chemicals, mining and metals, infrastructure, and power generation, Fluor boasts a century-long history of providing infrastructure and construction solutions. By relying on a global knowledge base and a strong team of professionals, Fluor aims to deliver safe, well-executed, and capital-efficient projects.
Fundamental Analysis
The recent earnings report highlights both concerns and optimism for Fluor. For the last quarter, revenue amounted to $3.98 billion, a 6.53% decrease compared to the previous quarter, which raises some eyebrows regarding short-term challenges. Nonetheless, this figure represents a 6.64% increase year-over-year, indicating longer-term positive growth. This year-over-year growth highlights the company's ability to generate more revenue despite short-term fluctuations.
The net income for the last quarter stood at $241 million. While this indicates a 112.94% decrease quarter-over-quarter, the substantial 508.47% decrease year-over-year is worrisome, signaling potential significant setbacks affecting profitability.
Fluor's EBITDA for the last quarter was $91 million, showing a decrease of 64.03% compared to the previous quarter. However, the 44.44% year-over-year increase suggests the company has improved its efficiency metrics compared to the same quarter last year.
Currently, Fluor's Price to Earnings (P/E) ratio stands at 4.13. Traditionally, a P/E ratio lower than the industry average might suggest that the stock is undervalued—which could potentially indicate a buying opportunity as it reflects investor pessimism that may not be justified by the company's long-term potential.
Technical Analysis
Today's stock price sits at $42.13. This marks a 20.13% increase over the past month, showcasing robust short-term momentum. Nevertheless, this is accompanied by a slight year-over-year decrease of 0.28%, hinting at potential concerns for long-term investors.
The Simple Moving Average (SMA10) is currently at 40.61, higher than the previous SMA10 of 40.19. This suggests an upward trend in price movement, which is typically a bullish signal for investors.
The Relative Strength Index (RSI) is currently 68.2, indicating neutral conditions. An RSI reading above 70 often signals overbought conditions, while below 30 signals oversold. Therefore, the present RSI suggests that the stock isn't currently in either extreme.
Alternative Data Analysis
From the standpoint of alternative data, Fluor maintains 657 open job positions according to data from popular job boards—implying a stable staffing outlook. Importantly, employee sentiment towards the company remains neutral, signaling neither strong positive nor negative trends in internal perceptions.
In terms of customer acquisition, traffic data estimates show approximately 100,000 visitors to Fluor's webpage. However, this figure is down by 21% in recent months—an alarming trend that might indicate dwindling customer interest.
Customer engagement via social media presents a mixed bag. Fluor has 2,200 followers on Instagram, up by 14% in recent months, showing increased interest. On the other hand, the steady count of 18,000 followers on Twitter over the same period suggests stagnant interest levels.
Additionally, AltIndex’s AI score for Fluor is 38, which signals a potential sell recommendation based on a blend of fundamental, technical, and alternative data points.
Conclusion and Recommendation
In summary, Fluor Corporation showcases both promising opportunities and potential risks. The year-over-year growth in revenue and EBITDA is encouraging, although recent quarter-over-quarter declines in these metrics, as well as net income, signal caution. The stock's low P/E ratio may suggest it is undervalued and presents a buying opportunity, especially with short-term technicals trending positively.
However, alternative data reveals some underlying concerns such as declining web traffic, which could point to future customer acquisition troubles. The mixed signals from job postings and social media engagement further add complexity to the decision-making process.
Taking all into account, potential investors might choose either to proceed cautiously by conducting further detailed analysis or consider other stocks with clearer bullish signals. Current holders may weigh maintaining their positions with an eye on near-term performance data.
Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.
