Back to top

Image: Bigstock

Fluor (FLR) to Develop Innovative Laser Fusion Power Plants

Read MoreHide Full Article

Fluor Corporation (FLR - Free Report) inked a memorandum of understanding (MOU) with Longview Fusion Energy Systems, Inc. to act as an engineering and construction partner for the global energy market.

Per the MOU, Fluor’s global experience in developing and constructing complex, large-scale facilities will help provide preliminary design and engineering services to support the development of Longview’s fusion-powered plant.

Tom D’Agostino, group president of Mission Solutions unit, said, “From developing and constructing large-scale energy facilities to designing, building and operating complex chemical processing and innovative industrial projects, our expertise helps clients reduce greenhouse gas emissions, improve energy efficiency and deliver cleaner, decarbonized projects.”

With the help of FLR’s Mission Solutions business, the revolutionary energy source will play an important role in meeting the world’s growing need for clean energy.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Shares of this Zacks Rank #3 (Hold) company have risen 4% in the past year against the Zacks Engineering - R and D Services industry’s decline of 1.3%.

Fluor’s Growth Prospect

Fluor’s market diversity has been a key strength that helps the company mitigate the cyclicality of the markets in which it operates. Its strategy of maintaining a good business portfolio mix permits it to focus on more stable business markets and capitalize on developing cyclical markets at suitable times.

The company has been focusing on its new strategy, “Building a Better Future,” within which it has outlined four strategic priorities for driving shareholder value. First, the company intends to drive growth across portfolios by enhancing markets outside the traditional oil and gas sector, including energy transition, advanced technology and life sciences, high-demand metals, infrastructure and mission solutions.

Second, Fluor aims to pursue contracts with fair and balanced commercial terms that reward value with a bias toward reimbursable contracts. The company decided that it would not bid competitive fixed-price EPC in the Energy & Chemicals segment and would be more selective in the Infrastructure segment. This marks a significant shift from the prior management team's high-risk, high-margin strategy.

Third, it intends to reinforce financial discipline by maintaining a solid balance sheet, and generating predictable cash flow and earnings.

Lastly, foster a high-performance culture with purpose by advancing efforts toward diversity, equity and inclusion, as well as promoting social progress and sustainability.

Key Picks

Some better-ranked stocks in the same space are:

Altair Engineering Inc. (ALTR - Free Report) currently sports a Zacks Rank #1 (Strong Buy). ALTR has a trailing four-quarter earnings surprise of 135.8%, on average.

The Zacks Consensus Estimate for ALTR’s 2023 sales and EPS indicates growth of 7.8% and 11.2%, respectively, from the previous year’s reported levels.

CRH plc’s (CRH - Free Report) long-term earnings growth rate is anticipated to be 10.2%. The Zacks Consensus Estimate for CRH’s 2023 sales and EPS indicates growth of 4.5% and 9.2%, respectively, from the previous year’s reported figures.

CRH currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

AECOM (ACM - Free Report) currently carries a Zacks Rank #2. ACM has a trailing four-quarter earnings surprise of 5.2%, on average.

The Zacks Consensus Estimate for ACM’s fiscal 2023 sales and EPS indicates growth of 3.9% and 5.8%, respectively, from the previous year’s reported levels.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Altair Engineering Inc. (ALTR) - free report >>

Fluor Corporation (FLR) - free report >>

AECOM (ACM) - free report >>

CRH PLC (CRH) - free report >>

Published in