Bet On This Earnings Superstar
by Jon Lewis 08/05/09
Free Trading Guides
The major problem right now is FLR's chart, which is showing strong resistance at the $55 level. That spot marked tops in June and July, and has been troublesome this week, as well.
Other than that, nothing should stand in the stock's way.
Sentiment toward Fluor is mixed. Ten of 18 analysts rate the shares a "buy," which is hardly an overwhelming endorsement.
The put/call ratio sits in the middle of the past year's range, but it's been on the decline for the past month, a sign of gaining optimism and buying power.
If the shares can break free of the shackles at $55, I like Fluor as a bullish play. With a solid earnings history at its back and sentiment that has further to unwind into buying, FLR looks to be a solid call trade.
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