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Here's Why Investing in Flowserve Stock Makes Sense Now

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Key Takeaways

  • Flowserve posts strong momentum in both Pump and Flow Control divisions across global markets.
  • End-market demand in chemicals, power and infrastructure drives bookings of $1.1B for Q2 2025.
  • MOGAS Industries buyout boosts Flow Control sales by 2.6% and expands aftermarket opportunities.

Flowserve Corporation (FLS - Free Report) is poised to gain from strength across its segments, acquired assets and shareholder-friendly moves.

FLS currently sports a Zacks Rank #1 (Strong Buy). In the past year, the company has gained 21.1% compared with the industry’s 10% growth.

Zacks Investment Research
Image Source: Zacks Investment Research

Let’s delve into the factors that make this company a smart investment choice at the moment.

Business Strength: Flowserve is benefiting from strong momentum in the Flowserve Pump Division and Flow Control Division segments. Strength in the aftermarket business, driven by a strong demand for products and services in North America, Middle East and Africa, is a prime catalyst for the Flowserve Pumps Division segment’s growth. An increase in bookings across general industries and power end markets also bodes well for the segment.

Solid momentum across original equipment and aftermarket businesses, driven by an increase in demand for products and services in Asia Pacific, North America, Latin America, Middle East and Europe, is supporting the Flow Control Division segment’s performance. The segment’s bookings grew 5.9% year over year in the same period aided by increased customer orders in the energy and general industries end markets.

End Market Strength: Strength in several end markets, along with its Diversify, Decarbonize and Digitize (3D) strategy, is driving Flowserve's booking levels. The company is gaining from ongoing investments in stormwater infrastructure and drainage projects in the general industries end market. Strength in the chemical end market, led by increased investment in petrochemical projects in the Middle East and Asia, has also been positive. The company expects integration of chemical production facilities in the Americas and Europe regions to be a tailwind in the quarters ahead. Solid booking level in the power generation market is driven by ongoing global investments in nuclear energy and combined-cycle power generation projects. FLS’ second-quarter 2025 bookings of $1.1 billion marked the 14th consecutive quarter of more than $1 billion in bookings.

Expansion Efforts: Over time, FLS has steadily strengthened its business through acquisitions. In October 2024, Flowserve acquired MOGAS Industries. The MOGAS acquisition augmented the company’s existing valve and automation product portfolio and accelerated its 3D growth strategy by significantly boosting its direct mining and mineral extraction exposure. The buyout has been integrated into Flowserve’s Flow Control Division segment and improved its aftermarket potential and generated revenue growth synergies. In the second quarter of 2025, the buyout had a positive contribution of 2.6% to its sales growth. 

Rewards to Shareholders: FLS rewards its shareholders handsomely through dividend payments and share buybacks. In the first six months of 2025, the company used $55.2 million to distribute dividends and bought back shares worth $52.8 million.

Other Stocks to Consider

Some other top-ranked companies are discussed below.

Graham Corporation (GHM - Free Report) currently sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

GHM delivered a trailing four-quarter average earnings surprise of 64%. In the past 60 days, the Zacks Consensus Estimate for Graham’s 2025 earnings has increased 15.4%.

Dover Corporation (DOV - Free Report) presently carries a Zacks Rank #2 (Buy). DOV delivered a trailing four-quarter average earnings surprise of 4%.

In the past 60 days, the consensus estimate for DOV’s 2025 earnings has inched up 1.2%.

DNOW Inc. (DNOW - Free Report) presently carries a Zacks Rank of 2. DNOW delivered a trailing four-quarter average earnings surprise of 44.1%.

In the past 60 days, the consensus estimate for DNOW’s 2025 earnings has increased 9.2%.

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