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Fluor Corporation Stock Faces Challenges Amid Downward Trends
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Fluor Corporation (FLR) is a leading player in the engineering and construction sector, specializing in large infrastructure projects.
Following a remarkable five-year performance, FLR stock has experienced a notable decline since early November, hitting resistance near previous highs.
Currently, earnings revisions for Fluor are disappointing, and the stock has dropped below a crucial long-term moving average.
Analyzing Fluor’s Current Stock Situation
Fluor provides essential engineering, procurement, and construction (EPC) services for extensive projects across multiple industries, complemented by maintenance and project management offerings.
In essence, the company designs, constructs, and maintains significant infrastructure and industrial endeavors. It operates primarily through three segments: Energy Solutions, Urban Solutions, and Mission Solutions.
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The company is involved in various sectors, from traditional oil and gas infrastructure to advanced nuclear power projects. Its Urban Solutions segment addresses a wide range of infrastructure needs, while Mission Solutions offers vital technical support to governmental operations, including nuclear security.
Fluor’s business model captures a broad spectrum of the energy transition and the expansion of U.S. energy infrastructure, alongside traditional projects such as roads and bridges. However, the firm has seen inconsistent earnings and revenue growth in recent years.
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When Fluor reported its Q4 results on February 18, it issued disappointing earnings guidance. Since then, the Q1 FY25 consensus earnings estimate has decreased by 28%, and the full-year FY25 estimate is down by 14%.
Should Investors Consider Exiting FLR Stock?
Due to the ongoing negative earnings revisions, Fluor has been assigned a Zacks Rank #5 (Strong Sell), thus continuing a downward trajectory that began in late 2024.
Over the last five years, FLR has surged 500%, rebounding after a significant downturn between 2018 and mid-2020. However, compared to the S&P 500’s 410% growth and the sector’s 121%, FLR’s 30% increase over the past 20 years remains relatively modest.
The recent stock decline stems from its inability to break above 2018 levels and its current position below the 21-month moving average. Investors may want to steer clear of Fluor stock for now, awaiting further guidance from management in the next quarter.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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