Fluor Corporation (FLR) Slid on Weak Earnings Report

Core Insights - Hotchkis & Wiley Mid-Cap Value Fund's third-quarter 2025 investor letter highlights strong equity market performance, with major indices reaching all-time highs, driven by enthusiasm for AI, anticipated Federal Reserve rate cuts, and robust corporate earnings [1] - The fund outperformed the Russell Midcap Value Index, achieving a gain of 7.74% compared to the index's 6.18% [1] Company Overview: Fluor Corporation (NYSE:FLR) - Fluor Corporation is an engineering, procurement, and construction (EPC) company, primarily generating revenue from full EPC services [3] - The stock experienced a one-month return of -5.10% and a 52-week decline of 22.26%, closing at $43.40 per share with a market capitalization of $7.016 billion as of December 09, 2025 [2] Performance Analysis - Fluor's stock underperformed in the third quarter due to a weak earnings report and reduced forward guidance [3] - Despite the underperformance, Fluor is considered a high-quality professional services company with a medium-risk business model, expected to grow without reinvested capital [3] Investment Sentiment - Fluor Corporation is not among the top 30 most popular stocks among hedge funds, with 64 hedge fund portfolios holding its stock at the end of the third quarter, up from 57 in the previous quarter [4] - While acknowledging Fluor's potential, the company believes certain AI stocks present greater upside potential and lower downside risk [4]