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Here's Why You Should Consider Investing in Flowserve Stock Now

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Flowserve Corporation (FLS - Free Report) stands to benefit from strength across its businesses, focus on operational excellence and solid liquidity position. The company remains focused on investing in growth opportunities and strengthening its long-term market position.

FLS, which has a market capitalization of $6.5 billion, currently carries a Zacks Rank #2 (Buy). Let’s delve into the factors that have been aiding the firm for a while now.

End-Market Strength: The company is witnessing several positive trends in its key end markets that hold promise for its long-term growth. These trends include strength in the chemical and oil & gas markets, growing investment in digitization and decarbonization projects and enhanced spending in the industrial wastewater market. FLS’ second-quarter bookings of $1.2 billion (up 12.2% year over year) marked the tenth consecutive quarter of more than $1 billion bookings.

Acquisition Benefits: The company aims to expand its market share, product offerings and customer base through strategic acquisitions. In July 2024, Flowserve acquired the intellectual property and in-process R&D related to cryogenic liquefied natural gas (LNG) submerged pump technology, systems and packaging from NexGen Cryogenic Solutions Inc. The buyout will expand the company’s LNG product portfolio and complement its existing pumps, valves and mechanical seals offering.

Recently, FLS also signed a definitive deal to acquire MOGAS Industries. The inclusion of MOGAS’ differentiated valve products and its impressive brand and technical expertise in diverse end markets will enable FLS to expand its customer offerings and boost its position in mining, mineral extraction and process industries.

Shareholder-Friendly Moves: Management remains focused on rewarding its shareholders handsomely. In the first six months of 2024, the company used $55.3 million for distributing dividends and bought back shares worth $16.2 million. Also, in the first quarter, it hiked its quarterly dividend by approximately 5% to 21 cents per share.

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YTD Price Performance of FLS Stock

Year to date, the company’s shares have gained 19.2% compared with the industry’s 8.7% growth.

Estimate Revisions: It’s worth noting that the Zacks Consensus Estimate for FLS’s 2024 earnings is pegged at $2.76 per share, indicating an increase of 3.6% from the 60-day-ago figure. The consensus estimate for 2025 earnings is pegged at $3.16 per share, indicating an increase of 2.3% from the year-ago period.

Other Key Picks

Some other top-ranked stocks from the same space are discussed below.

Crane Company (CR - Free Report) presently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The company delivered a trailing four-quarter average earnings surprise of 11.2%. In the past 60 days, the Zacks Consensus Estimate for CR’s 2024 earnings has increased 2%.

Ferguson Enterprises Inc. (FERG - Free Report) currently carries a Zacks Rank of 2. FERG delivered a trailing four-quarter average earnings surprise of 2.6%.

In the past 60 days, the consensus estimate for Ferguson’s fiscal 2025 earnings has remained steady.

Nordson Corporation (NDSN - Free Report) presently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 4.1%.

In the past 60 days, the Zacks Consensus Estimate for NDSN’s fiscal 2024 earnings has increased 0.2%.

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