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Strength Seen in Flowserve (FLS): Can Its 8.5% Jump Turn into More Strength?
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Flowserve (FLS - Free Report) shares ended the last trading session 8.5% higher at $36.64. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 1.1% gain over the past four weeks.
The stock jumped following its announcement to acquire Montreal-based industrial valves manufacturer, Velan, in an all-cash transaction for approximately $245 million. Given Velan’s strong presence in nuclear, cryogenic and defense markets, the acquisition will accelerate FLS’ Diversification, Decarbonization and Digitization (3D) strategy. The transaction is also expected to generate significant aftermarket revenue and bring synergies for FLS.
Flowserve expects the transaction to generate approximately $20 million of run-rate cost synergies within two years of closing. The acquisition is expected to be completed by the second quarter of 2023, and Velan will be a part of FLS’ Flow Control Division segment.
The acquisition of Velan will help Flowserve maintain a significant presence in Québec. Upon completion, the transaction is expected to be accretive to Flowserve’s adjusted EPS in the first full year.
This company that makes pumps, valves and other parts for the oil and gas industries is expected to post quarterly earnings of $0.43 per share in its upcoming report, which represents a year-over-year change of -4.4%. Revenues are expected to be $991.89 million, up 7.9% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Flowserve, the consensus EPS estimate for the quarter has been revised 0.6% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on FLS going forward to see if this recent jump can turn into more strength down the road.
Flowserve is a member of the Zacks Manufacturing - General Industrial industry. One other stock in the same industry, Manitex (MNTX - Free Report) , finished the last trading session 5.6% higher at $5.89. MNTX has returned 44.6% over the past month.
For Manitex, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.07. This represents a change of +187.5% from what the company reported a year ago. Manitex currently has a Zacks Rank of #3 (Hold).
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Strength Seen in Flowserve (FLS): Can Its 8.5% Jump Turn into More Strength?
Flowserve (FLS - Free Report) shares ended the last trading session 8.5% higher at $36.64. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 1.1% gain over the past four weeks.
The stock jumped following its announcement to acquire Montreal-based industrial valves manufacturer, Velan, in an all-cash transaction for approximately $245 million. Given Velan’s strong presence in nuclear, cryogenic and defense markets, the acquisition will accelerate FLS’ Diversification, Decarbonization and Digitization (3D) strategy. The transaction is also expected to generate significant aftermarket revenue and bring synergies for FLS.
Flowserve expects the transaction to generate approximately $20 million of run-rate cost synergies within two years of closing. The acquisition is expected to be completed by the second quarter of 2023, and Velan will be a part of FLS’ Flow Control Division segment.
The acquisition of Velan will help Flowserve maintain a significant presence in Québec. Upon completion, the transaction is expected to be accretive to Flowserve’s adjusted EPS in the first full year.
This company that makes pumps, valves and other parts for the oil and gas industries is expected to post quarterly earnings of $0.43 per share in its upcoming report, which represents a year-over-year change of -4.4%. Revenues are expected to be $991.89 million, up 7.9% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Flowserve, the consensus EPS estimate for the quarter has been revised 0.6% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on FLS going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Flowserve is a member of the Zacks Manufacturing - General Industrial industry. One other stock in the same industry, Manitex (MNTX - Free Report) , finished the last trading session 5.6% higher at $5.89. MNTX has returned 44.6% over the past month.
For Manitex, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.07. This represents a change of +187.5% from what the company reported a year ago. Manitex currently has a Zacks Rank of #3 (Hold).