Fluor Corporation (FLR) – Full Technical & Fundamental AnalysisI. Technical Analysis
The chart shows a combination of Fibonacci retracements, an ascending support trendline, a descending resistance trendline, MACD+RSI, and Stochastic RSI. Here is the complete breakdown:
🔍 1. Price Structure & Trend
✔️ Ascending Triangle / Rising Support
FLR has created a series of higher lows since the $26.70 bottom, forming a strong rising trendline.
Simultaneously, multiple lower highs form a descending resistance, creating a wedge-like consolidation.
➡️ This signals price compression — a breakout is coming.
🔍 2. Fibonacci Key Levels
Using the swing low $26.70 and swing high $49.64, important levels include:
0.382 → $40.87 (major resistance)
0.50 → $38.17 (current barrier zone)
0.618 → $35.21 (major support)
0.786 → $32.01 (deep support)
✔️ Current price is near $37.23
Price sits between 0.50 and 0.618, a typical reversal zone in strong trends.
🔍 3. Support & Resistance
Support Levels
$35.00–$35.20 (0.618 Fibonacci)
Ascending trendline
Below $35, next support is $32.
Resistance Levels
$38.17 – $40.87
Descending trendline
Above $44, final resistance is $49.64 (previous high)
📈 4. MACD+RSI Indicator
MACD is turning bullish, with the MACD line curving upward.
Histogram turning green.
Momentum begins shifting toward buyers.
This supports the possibility of a medium-term upward swing.
📉 5. Stochastic RSI
Currently rising toward the upper region (60–70).
Shows short-term bullish momentum.
Once above 90, a short-term pullback becomes possible.
⭐ 6. Technical Summary
Bullish Scenario
If FLR breaks above $38.17, targets are:
$40.87
$44.22
$49.64
Bearish Scenario
If FLR loses $35, price may fall to:
$32.01
A break below $32 invalidates the bullish structure.
Overall Technical Bias:
➡️ Neutral to Bullish, with confirmation needed above $38.17.
II. Fundamental Analysis
Here are the most recent reliable fundamental metrics available, including EPS and P/E as requested.
🧩 1. EPS & P/E (Latest Available)
Metric Value Interpretation
EPS (TTM) ≈ $18–$20 per share Extremely high relative to price, partly due to non-recurring gains
P/E Ratio (TTM) ≈ 2.3× Very low; signals undervaluation or temporarily inflated earnings
Forward P/E ≈ 19–20× Indicates expected normalization of earnings in coming quarters
👉 What this means
A very low P/E usually attracts value investors,
BUT the large gap between P/E (2.3×) and forward P/E (~20×) indicates that recent EPS includes one-time gains or unusually strong project profits.
Analysts expect more normal (lower) earnings going forward, which is why forward valuation is much higher.
📈 2. Revenue & Earnings Momentum
Fluor has reported:
Strong year-over-year revenue growth
Improving profitability after years of restructuring
Solid performance in infrastructure, LNG, chemicals, and government contracts
Backlog has been growing, indicating stable revenue visibility.
💰 3. Cash Flow & Balance Sheet
Operating cash flow has strengthened significantly.
Long-term debt levels have declined, improving leverage and financial stability.
Liquidity remains solid, supporting ongoing project execution.
⚙️ 4. Growth Catalysts
LNG megaprojects in the U.S. and Middle East
Government and defense contracts
CHIPS Act & clean energy construction
Mining & industrial expansion projects
Nuclear and carbon reduction infrastructure
These trends support strong multi-year demand for EPC services.
⚠️ 5. Key Risks
Project execution risk (cost overruns can impact earnings)
Highly cyclical industry
Backlog dependency on large, long-term contracts
Global economic slowdown could reduce project awards
⭐ III. Combined Technical + Fundamental Outlook
✔️ Technical signals trending bullish (MACD recovery, strong support at $35, bullish reversal zone).
✔️ Fundamentals improving, but EPS is inflated and future P/E is much higher.
🎯 Overall Outlook:
Bullish potential, but confirmation is needed above $38.17 for continuation toward $41 → $44 → $49.
Long-term investors should consider:
Strong fundamentals
Attractive low current P/E
But also forward valuation risk
Short-term traders should watch:
Trendline support
MACD confirmation
Stochastic RSI reaching overbought
⚠️ Disclaimer (as you requested):
This analysis reflects my personal view only. I take no responsibility for your buy or sell decisions.
