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Flowserve (FLS) on Solid Growth Trajectory Across Markets
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On Oct 15, we issued an updated research report on Flowserve Corporation (FLS - Free Report) .
In the past three months, this Zacks Rank #2 (Buy) stock has yielded a return of 21.7% against the industry’s decline of 0.1%.
Prevalent Scenario
Flowserve believes that its end-market prospects are bright. In the chemical market, the company stands to gain from improving demand spurring investments in ethylene and derivative facilities. In the power market, strengthening thermal solar market increased the need for the company's technical services. In the general industries, rise in mining investments and higher distribution activities as a result of prosperity in the global economy, boosted the company’s growth prospects.
Also, the company is currently undergoing a transformational realignment program to optimize its manufacturing platform and reducing costs. The company is focusing on improving on-time delivery, lowering backlog, enhancing sales process and further leveraging on the supplier relationships. Strategies devised for achieving the above-mentioned objectives are anticipated to yield cost savings in 2018.
In the long run, Flowserve's multi-year program, Flowserve 2.0, is expected to enhance its ability to effectively improve customer relations, create a better work environment for its employees as well as drive a significant shareholder value for the long term.
Further, the company follows a balanced capital-allocation strategy. It invests in distribution channel and other industrial opportunities as well as product development and enhancement, ensuring long-haul growth.
In addition, the company has consistently returned capital to its shareholders in the form of share repurchases and dividends. In 2018, it intends to pay $100 million in dividends to shareholders and use $80-$90 million in cash for capital expenditures.
Luxfer Holdings surpassed estimates thrice in the trailing four quarters with an average earnings surprise of 11.04%.
Kadant outpaced estimates in each of the preceding four quarters with an average positive surprise of 13.95%.
Ingersoll-Rand exceeded estimates in three of the last four quarters with an average beat of 5.29%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
Flowserve (FLS) on Solid Growth Trajectory Across Markets
On Oct 15, we issued an updated research report on Flowserve Corporation (FLS - Free Report) .
In the past three months, this Zacks Rank #2 (Buy) stock has yielded a return of 21.7% against the industry’s decline of 0.1%.
Prevalent Scenario
Flowserve believes that its end-market prospects are bright. In the chemical market, the company stands to gain from improving demand spurring investments in ethylene and derivative facilities. In the power market, strengthening thermal solar market increased the need for the company's technical services. In the general industries, rise in mining investments and higher distribution activities as a result of prosperity in the global economy, boosted the company’s growth prospects.
Also, the company is currently undergoing a transformational realignment program to optimize its manufacturing platform and reducing costs. The company is focusing on improving on-time delivery, lowering backlog, enhancing sales process and further leveraging on the supplier relationships. Strategies devised for achieving the above-mentioned objectives are anticipated to yield cost savings in 2018.
In the long run, Flowserve's multi-year program, Flowserve 2.0, is expected to enhance its ability to effectively improve customer relations, create a better work environment for its employees as well as drive a significant shareholder value for the long term.
Further, the company follows a balanced capital-allocation strategy. It invests in distribution channel and other industrial opportunities as well as product development and enhancement, ensuring long-haul growth.
In addition, the company has consistently returned capital to its shareholders in the form of share repurchases and dividends. In 2018, it intends to pay $100 million in dividends to shareholders and use $80-$90 million in cash for capital expenditures.
Other Stocks to Consider
Other top-ranked stocks in the same space include Luxfer Holdings PLC (LXFR - Free Report) , Kadant Inc (KAI - Free Report) and Ingersoll-Rand (IR - Free Report) . While Luxfer Holdings sports a Zacks Rank #1 (Strong Buy), Kadant and Ingersoll-Rand carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Luxfer Holdings surpassed estimates thrice in the trailing four quarters with an average earnings surprise of 11.04%.
Kadant outpaced estimates in each of the preceding four quarters with an average positive surprise of 13.95%.
Ingersoll-Rand exceeded estimates in three of the last four quarters with an average beat of 5.29%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>