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Here's Why Flowserve (FLS) Stock is an Attractive Pick Now
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Flowserve Corporation (FLS - Free Report) is gaining from solid operational execution, pricing actions and improving supply chains.
Let’s delve into the factors that make this Zacks Rank #2 (Buy) company a smart investment choice at the moment.
Business Strength: Record levels of booking, due to strong MRO and aftermarket activity, are fostering Flowserve's growth. The company’s third-quarter 2023 bookings of $1.07 billion marked the seventh consecutive quarter of more than $1 billion bookings. Solid booking levels highlight the strength across the company’s end markets. The company’s Diversify, Decarbonize and Digitize strategy also supports its strong booking levels. The uptrend in bookings is expected to continue through 2024, driven by strong MRO and aftermarket activity levels.
Bullish 2023 Outlook: Flowserve’s bullish 2023 guidance, due to the strong third-quarter performance, raises optimism. The company expects revenues to increase 18-19% year over year in 2023 compared with a 16-18% rise anticipated earlier. Adjusted earnings per share are estimated to be between $1.95 and $2.05 compared with $1.85-$2.00 expected earlier.
Rewards to Shareholders: The company continues to increase shareholders’ value through dividend payments & share repurchases. The company paid dividends of $78.7 million in the first nine months of 2023. Also, in 2022, the company paid out dividends worth $104.5 million to its shareholders.
Northward Estimate Revision: The Zacks Consensus Estimate for Flowserve’s 2023 earnings has been revised 1% upward in the past 60 days.
Price Performance: Shares of Flowserve have gained 32.6% in the past year, outperforming the industry’s 21.2% increase.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked companies from the same industry are discussed below:
GHM delivered a trailing four-quarter average earnings surprise of 264.8%. In the past 60 days, the Zacks Consensus Estimate for Graham’s 2023 earnings has increased 106.7%. The stock has risen 107.6% in the past year.
Applied Industrial Technologies, Inc. (AIT - Free Report) presently carries a Zacks Rank of 2. It has a trailing four-quarter average earnings surprise of 13.9%.
The Zacks Consensus Estimate for AIT’s fiscal 2024 earnings has increased 1.8% in the past 60 days. Shares of Applied Industrial have rallied 36.4% in the past year.
Crane Company (CR - Free Report) currently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 29.8%.
In the past 60 days, the Zacks Consensus Estimate for Crane’s 2023 earnings has remained steady. The stock has risen 48% in the past year.
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Here's Why Flowserve (FLS) Stock is an Attractive Pick Now
Flowserve Corporation (FLS - Free Report) is gaining from solid operational execution, pricing actions and improving supply chains.
Let’s delve into the factors that make this Zacks Rank #2 (Buy) company a smart investment choice at the moment.
Business Strength: Record levels of booking, due to strong MRO and aftermarket activity, are fostering Flowserve's growth. The company’s third-quarter 2023 bookings of $1.07 billion marked the seventh consecutive quarter of more than $1 billion bookings. Solid booking levels highlight the strength across the company’s end markets. The company’s Diversify, Decarbonize and Digitize strategy also supports its strong booking levels. The uptrend in bookings is expected to continue through 2024, driven by strong MRO and aftermarket activity levels.
Bullish 2023 Outlook: Flowserve’s bullish 2023 guidance, due to the strong third-quarter performance, raises optimism. The company expects revenues to increase 18-19% year over year in 2023 compared with a 16-18% rise anticipated earlier. Adjusted earnings per share are estimated to be between $1.95 and $2.05 compared with $1.85-$2.00 expected earlier.
Rewards to Shareholders: The company continues to increase shareholders’ value through dividend payments & share repurchases. The company paid dividends of $78.7 million in the first nine months of 2023. Also, in 2022, the company paid out dividends worth $104.5 million to its shareholders.
Northward Estimate Revision: The Zacks Consensus Estimate for Flowserve’s 2023 earnings has been revised 1% upward in the past 60 days.
Price Performance: Shares of Flowserve have gained 32.6% in the past year, outperforming the industry’s 21.2% increase.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked companies from the same industry are discussed below:
Graham Corporation (GHM - Free Report) presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
GHM delivered a trailing four-quarter average earnings surprise of 264.8%. In the past 60 days, the Zacks Consensus Estimate for Graham’s 2023 earnings has increased 106.7%. The stock has risen 107.6% in the past year.
Applied Industrial Technologies, Inc. (AIT - Free Report) presently carries a Zacks Rank of 2. It has a trailing four-quarter average earnings surprise of 13.9%.
The Zacks Consensus Estimate for AIT’s fiscal 2024 earnings has increased 1.8% in the past 60 days. Shares of Applied Industrial have rallied 36.4% in the past year.
Crane Company (CR - Free Report) currently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 29.8%.
In the past 60 days, the Zacks Consensus Estimate for Crane’s 2023 earnings has remained steady. The stock has risen 48% in the past year.