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Here's Why Investors Should Buy Fluor (FLR) Stock Right Now
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Fluor Corporation (FLR - Free Report) has been bolstering its prospects through a strong commitment to its "Building a Better Future" strategy, in addition to benefiting from the infrastructural initiatives of the U.S. administration and a diversified business portfolio.
Shares of this engineering, procurement, construction and maintenance service provider have jumped 47.1% in the past year, outperforming the Zacks Engineering - R and D Services industry’s 43.3% rise. Earnings estimates for 2023 for the company have moved 22.4% upward over the past 60 days. This positive trend signifies bullish analysts’ sentiments, indicating robust fundamentals and the expectation of outperformance in the near term.
Fluor — a Zacks Rank #1 (Strong Buy) stock — has a favorable VGM Score of B. Our research shows that stocks with a VGM Score of A or B, combined with a Zacks Rank #1 or 2 (Buy), offer the best investment opportunities to investors.
Image Source: Zacks Investment Research
Let’s Delve Into the Major Driving Factors
Biden’s Infrastructural Move
Fluor and other engineering service providers are expected to benefit from strong global trends in infrastructure modernization, energy transition, national security, and a potential super-cycle in global supply chain investments. A significant boost in infrastructural and public construction spending to underscore the need for rebuilding the nation’s deteriorating roads and bridges and funding new climate resilience and broadband initiatives is a boon for Fluor.
The company has solid prospects, as is evident from the Zacks Consensus Estimate for 2023 earnings per share (EPS) of $2.13, which indicates 159.8% year-over-year growth. The same for 2024 is expected to witness a 22.3% growth rate.
Strategic Efforts
Fluor has effectively executed its "Building a Better Future" strategy, centered around four key priorities aimed at enhancing shareholder value. Firstly, the company's strategic move to diversify its portfolio beyond the traditional oil and gas sector into areas such as energy transition, advanced technology, life sciences, high-demand metals, infrastructure, and mission solutions has proven to be a wise decision.
Secondly, Fluor's deliberate choice to abstain from competitive fixed-priced EPC bids in the Energy & Chemicals segment has yielded positive results. The company is adopting a more discerning approach, particularly in its Infrastructure ventures, representing a noteworthy departure from the high-risk, high-margin strategy pursued by the previous management team.
Thirdly, Fluor's robust financial position, supported by a steady stream of predictable cash flow and earnings, is an encouraging factor. Lastly, the company remains committed to fostering a high-performance culture by advancing initiatives related to diversity, equity, and inclusion, while also actively promoting social progress and sustainability.
Diversity in Business
Fluor continues to benefit from its market diversity, which serves as a crucial asset in reducing the impact of market fluctuations within its operational domains. The company's strategic approach of maintaining a well-balanced portfolio allows it to concentrate on the more resilient sectors of the business while seizing opportunities in cyclical markets when the timing is opportune.
Additionally, Fluor's long-term outlook remains robust, with promising growth prospects in areas such as renewable energy, gas-fired combined cycle generation, and projects focused on achieving air emissions compliance for existing coal-fired power plants.
The Zacks Consensus Estimate for BCC’s 2023 EPS has increased to $11.75 from $8.93 over the past 60 days.
TopBuild Corp. (BLD - Free Report) flaunts a Zacks Rank #1. It has a trailing four-quarter earnings surprise of 14.1% on average. Shares of BLD have surged 52.7% in the past year.
The Zacks Consensus Estimate for BLD’s 2023 sales and EPS indicates gains of 3.3% and 8.4%, respectively, from the year-ago period’s levels.
EMCOR Group, Inc. (EME - Free Report) flaunts a Zacks Rank #1. It has a trailing four-quarter earnings surprise of 17.2%, on average. Shares of EME have risen 84.2% in the past year.
The Zacks Consensus Estimate for EME’s 2023 sales and EPS suggests growth of 11.3% and 35.4%, respectively, from the year-ago period’s levels.
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Here's Why Investors Should Buy Fluor (FLR) Stock Right Now
Fluor Corporation (FLR - Free Report) has been bolstering its prospects through a strong commitment to its "Building a Better Future" strategy, in addition to benefiting from the infrastructural initiatives of the U.S. administration and a diversified business portfolio.
Shares of this engineering, procurement, construction and maintenance service provider have jumped 47.1% in the past year, outperforming the Zacks Engineering - R and D Services industry’s 43.3% rise. Earnings estimates for 2023 for the company have moved 22.4% upward over the past 60 days. This positive trend signifies bullish analysts’ sentiments, indicating robust fundamentals and the expectation of outperformance in the near term.
Fluor — a Zacks Rank #1 (Strong Buy) stock — has a favorable VGM Score of B. Our research shows that stocks with a VGM Score of A or B, combined with a Zacks Rank #1 or 2 (Buy), offer the best investment opportunities to investors.
Image Source: Zacks Investment Research
Let’s Delve Into the Major Driving Factors
Biden’s Infrastructural Move
Fluor and other engineering service providers are expected to benefit from strong global trends in infrastructure modernization, energy transition, national security, and a potential super-cycle in global supply chain investments. A significant boost in infrastructural and public construction spending to underscore the need for rebuilding the nation’s deteriorating roads and bridges and funding new climate resilience and broadband initiatives is a boon for Fluor.
The company has solid prospects, as is evident from the Zacks Consensus Estimate for 2023 earnings per share (EPS) of $2.13, which indicates 159.8% year-over-year growth. The same for 2024 is expected to witness a 22.3% growth rate.
Strategic Efforts
Fluor has effectively executed its "Building a Better Future" strategy, centered around four key priorities aimed at enhancing shareholder value. Firstly, the company's strategic move to diversify its portfolio beyond the traditional oil and gas sector into areas such as energy transition, advanced technology, life sciences, high-demand metals, infrastructure, and mission solutions has proven to be a wise decision.
Secondly, Fluor's deliberate choice to abstain from competitive fixed-priced EPC bids in the Energy & Chemicals segment has yielded positive results. The company is adopting a more discerning approach, particularly in its Infrastructure ventures, representing a noteworthy departure from the high-risk, high-margin strategy pursued by the previous management team.
Thirdly, Fluor's robust financial position, supported by a steady stream of predictable cash flow and earnings, is an encouraging factor. Lastly, the company remains committed to fostering a high-performance culture by advancing initiatives related to diversity, equity, and inclusion, while also actively promoting social progress and sustainability.
Diversity in Business
Fluor continues to benefit from its market diversity, which serves as a crucial asset in reducing the impact of market fluctuations within its operational domains. The company's strategic approach of maintaining a well-balanced portfolio allows it to concentrate on the more resilient sectors of the business while seizing opportunities in cyclical markets when the timing is opportune.
Additionally, Fluor's long-term outlook remains robust, with promising growth prospects in areas such as renewable energy, gas-fired combined cycle generation, and projects focused on achieving air emissions compliance for existing coal-fired power plants.
Other Key Picks
Boise Cascade Company (BCC - Free Report) sports a Zacks Rank #1. BCC has a trailing four-quarter earnings surprise of 25.5% on average. Shares of BCC have gained 78.3% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BCC’s 2023 EPS has increased to $11.75 from $8.93 over the past 60 days.
TopBuild Corp. (BLD - Free Report) flaunts a Zacks Rank #1. It has a trailing four-quarter earnings surprise of 14.1% on average. Shares of BLD have surged 52.7% in the past year.
The Zacks Consensus Estimate for BLD’s 2023 sales and EPS indicates gains of 3.3% and 8.4%, respectively, from the year-ago period’s levels.
EMCOR Group, Inc. (EME - Free Report) flaunts a Zacks Rank #1. It has a trailing four-quarter earnings surprise of 17.2%, on average. Shares of EME have risen 84.2% in the past year.
The Zacks Consensus Estimate for EME’s 2023 sales and EPS suggests growth of 11.3% and 35.4%, respectively, from the year-ago period’s levels.