Investors Who Bought Fluor (NYSE:FLR) Shares A Year Ago Are Now Up 211%

Unfortunately, investing is risky - companies can and do go bankrupt. But if you pick the right stock, you can make a lot more than 100%. For example, the Fluor Corporation (NYSE:FLR) share price has soared 211% return in just a single year. On top of that, the share price is up 11% in about a quarter. But this could be related to the strong market, which is up 8.6% in the last three months. Unfortunately the longer term returns are not so good, with the stock falling 62% in the last three years.

See our latest analysis for Fluor

Because Fluor made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last year Fluor saw its revenue shrink by 9.3%. So we would not have expected the share price to rise 211%. This is a good example of how buyers can push up prices even before the fundamental metrics show much growth. Of course, it could be that the market expected this revenue drop.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

earnings-and-revenue-growth

This free interactive report on Fluor's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

It's nice to see that Fluor shareholders have received a total shareholder return of 211% over the last year. Notably the five-year annualised TSR loss of 9% per year compares very unfavourably with the recent share price performance. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. It's always interesting to track share price performance over the longer term. But to understand Fluor better, we need to consider many other factors. Take risks, for example - Fluor has 1 warning sign we think you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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