Fluor Corp Scores 54% in Growth Investor Model Report

Fluor Corp has received a rating of 54% according to a report on its growth potential using the Growth Investor model. The evaluation indicates mixed results with deficiencies in revenue growth relative to EPS and long-term EPS growth, which could impact investor sentiment.

Date: 28-10-2024

AI Rating: 5

According to the report, Fluor Corp (FLR) is being evaluated using the Growth Investor model, which emphasizes persistent growth in earnings and sales, reasonable valuations, and low debt levels. The stock currently holds a rating of 54%, suggesting moderate interest from the strategy, as this score is below the 80% threshold typically indicating strong interest.

When analyzing specific metrics, the report highlights some positive indicators as well as notable weaknesses:

P/E Ratio: Classified as a pass, indicating a reasonable valuation based on earnings.
Revenue Growth in relation to EPS Growth: This metric has failed, signaling that revenue growth is not keeping pace with the company's earnings per share growth.
Sales Growth Rate: Rated a pass, indicating a positive trajectory in sales.
Current Quarter Earnings: Rated a pass, suggesting that the latest earnings are strong.
Quarterly Earnings One Year Ago: Also a pass, indicating improvement or consistency in earnings.
Positive Earnings Growth Rate for Current Quarter: This is a pass, showing that the current quarter is performing well.
Earnings Growth Rate for the Past Several Quarters: This metric has failed, suggesting inconsistency in performance over several quarters.
EPS Growth for Current Quarter must be greater than prior 3 quarters: This has passed, which indicates positive performance compared to previous quarters.
EPS Growth for Current Quarter must be greater than the Historical Growth Rate: This metric has failed, which raises concerns about sustainability.
Earnings Persistence: Rated as a fail, indicating that earnings are not consistently strong over time.
Long-term EPS Growth: This also failed, indicating concerns about future earnings potential.
Total Debt/Equity Ratio: This metric has failed, which may suggest that the company has a high level of debt relative to equity.
Insider Transactions: Classified as a pass, indicating positive sentiment from insiders.

In conclusion, while the stock presents some positive signs with current earnings and sales growth, significant weaknesses in long-term earnings growth, revenue growth relative to EPS, and a high debt ratio could detract from investor confidence and negatively affect stock price movements.

Stocks: FLR