Fluor Corporation (FLR) helps design, build, and maintain massive infrastructure and industrial projects.
The stock has tumbled since early November after it became overheated and met resistance near its previous highs, following a massive five-year run.
Fluor’s earnings revisions are trending in the wrong direction, and the stock has fallen below a potentially critical long-term moving average.
What’s Going On with Fluor Stock?
Fluor provides engineering, procurement, and construction (EPC) services for large-scale projects across various industries. The company also offers maintenance and project management services for these projects.
Simply put, Fluor helps design, build, and maintain massive infrastructure and industrial projects. The company operates through three main segments: Energy Solutions, Urban Solutions, and Mission Solutions.
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The firm supports everything from traditional oil and gas refineries and pipelines to nuclear power and beyond. Additionally, its Urban Solutions segment works on various infrastructure projects, while Mission Solutions provides technical services to governments, such as nuclear security.
Fluor offers broad-based exposure to the energy transition, the broader buildout of U.S. energy infrastructure, and traditional projects like roads and bridges. However, the company’s earnings and revenue growth have been inconsistent over the past several years.
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The company provided downbeat earnings guidance when it reported its Q4 results on February 18. Its Q1 FY25 consensus earnings estimate has since tumbled 28%, with its full-year FY25 estimate down 14%.
Time to Stay Away from FLR Stock?
Fluor’s negative earnings revisions have earned it a Zacks Rank #5 (Strong Sell), extending a downward trend that began in late 2024.
FLR has skyrocketed 500% in the past five years, after tumbling between 2018 and mid-2020. However, the stock is up only 30% over the past 20 years, compared to the S&P 500’s 410% run and its sector’s 121%.
Fluor’s selloff came after it failed to break out above its 2018 levels, and it is now trading below its 21-month moving average. It might be best to avoid Fluor stock for now and wait for management to provide guidance 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.
