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Flowserve (FLS) Clinches Valve Deal for OMV's Recycling Plant

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Flowserve Corporation (FLS - Free Report) recently secured a contract from OMV Aktiengesellschaft (OMV) for the delivery of control and ball valves. Financial terms of the contract were not disclosed by the parties involved.

Flowserve’s share price increased 1.4% on the last trading day, eventually closing the session at $29.1.

Inside the Headlines

Per the deal, Flowserve will be responsible for supplying control and ball valves to OMV’s chemical recycling demonstration plant based in Schwechat, Austria. Using OMV’s ReOil technology, plastic wastes will be recycled into synthetic feedstocks. The synthetic feedstocks will be used for the production of plastics and base chemicals, required for producing packaging material in medical and food industries. This deal is a testimony to FLS's commitment toward driving decarbonization in the society.

It is worth noting that the plant will likely become operational in 2023 and be capable of producing an output of 16,000 tons every year. OMV is expected to further establish an industrial-scale plant in 2026, based on the performance of this demonstration plant.

Zacks Rank, Price Performance and Earnings Estimate Trend

Flowserve, with a $3.8-billion market capitalization, currently carries a Zacks Rank #3 (Hold). FLS stands to benefit from higher bookings, a strong backlog and its realignment program in the quarters ahead.

Zacks Investment Research
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Shares of Flowserve have lost 10% compared with the 22.3% decline of its industry in the past three months.

The Zacks Consensus Estimate for second-quarter 2022 earnings has decreased 34.9% to 28 cents in the past 60 days. Also, earnings estimates for 2022 have moved 10.2% south to $1.59 during the same period.

Zacks Rank & Stocks to Consider

Some better-ranked companies from the industrial products sector are discussed below.

Applied Industrial Technologies, Inc. (AIT - Free Report) presently sports a Zacks Rank #1. AIT delivered a trailing four-quarter earnings surprise of 25.4%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

AIT’s earnings estimates have increased 5.4% for fiscal 2022 (ending June 2022) in the past 60 days. Its shares have rallied 6.8% in the past three months.

Roper Technologies, Inc. (ROP - Free Report) presently has a Zacks Rank #2 (Buy). Its earnings surprise in the last four quarters was 2%, on average.

In the past 60 days, ROP’s earnings estimates have increased 1.1% for 2022. The stock has declined 2.9% in the past three months.

Ferguson plc (FERG - Free Report) is presently Zacks #2 Ranked. FERG’s earnings surprise in the last four quarters was 14.2%, on average.

In the past 60 days, the stock’s earnings estimates have increased 6.5% for fiscal 2022 (ending July 2022). The same has declined 22% in the past three months.

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