We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why You Should Consider Buying Flowserve (FLS) Now
Read MoreHide Full Article
Industrial Products currently occupies the fourth position among the 16 Zacks sectors. Its performance in the past year has been impressive, evident from 6.2% return recorded during the period.
For 2018, the sector's earnings are predicted to increase 24.2% year over year while its revenues are projected to grow 9.6%. There are many factors that reflect the sector’s solid prospects, a few of which are discussed below:
Industrial production in the United States is on the rise. From a year-over-year growth of 2.8% registered in January 2018, the U.S. industrial production has improved roughly 4.9% in August. This improvement indicates the progress of the industrial sector of the country. Furthermore, a healthy job market, strength in housing markets and improving global economy are beneficial.
Investors interested in reaping benefits from prospects in the sector may choose stocks that carry a Zacks Rank #1 (Strong Buy) or 2 (Buy). Of many investment-friendly options, we believe that adding Flowserve Corporation (FLS - Free Report) to the portfolio is a smart choice. The stock currently carries a Zacks Rank #2 and has a favorable VGM Score of B.
In the past three months, Flowserve’s shares yielded 35.1% return, outperforming 8.6% growth recorded by the industry.
Let's delve deeper and discuss why Flowserve is a suitable investment option.
Bottom-Line Performance & Projections: Flowserve's earnings in the second quarter of 2018 surged 86.4% year over year on the back of solid sales growth, improved operating margin and lower tax rate. For 2018, the company anticipates adjusted earnings per share in the range of $1.50-$1.70. This projection is higher than earnings of $1.36 a year ago.
Driven by solid performance and outlook, the company’s earnings estimates have been increased in the past 60 days. It’s worth noting that eight brokerage firms raised estimates for 2018 and six lifted estimates for 2019. Currently, the Zack Consensus Estimate for earnings is pegged at $1.70 for 2018 and $2.12 for 2019, reflecting growth of 4.9% and 4.4% from the respective 60-day-ago tallies.
Also, the company’s earnings in the next five years are projected to grow 17.3% compared with the industry’s 12.9% rise.
Solid Top Line: In the second quarter of 2018, Flowserve’s top-line growth of 11% was driven by organic sales growth and positive impact from movements in foreign currencies. Also, the company recorded sales beat of 5.6%. Aftermarket sales in the quarter grew 12.4% and original equipment sales expanded 9.5%.
For the Engineered Product Division, sales grew 12.4% year over year. Sales for Industrial Product Division and Flow Control Division expanded 7.2% and 11.3%, respectively.
For 2018, the company anticipates revenues to increase 3-6%, against a decline of 8% a year ago. Demand from end markets — including oil & gas, chemical, power and general industries — is likely to be healthy.
The Zacks Consensus Estimate for revenues is pegged at $3.9 billion for 2018 and $4.1 billion for 2019, reflecting year-over-year growth of 6.3% and 4.4%, respectively.
Dividends & Capital Expenditures: Flowserve consistently rewards shareholders handsomely, especially through dividend payments. In the first half of 2018, the company allocated $49.7 million toward the distribution of dividends to shareholders. It's worth mentioning here that the company's dividend payments have increased from 56 cents per share in 2013 to 76 cents in 2017. The quarterly dividend rate is currently at 19 cents. We believe that net income growth in the upcoming quarters will enable the company to continue rewarding shareholders with dividends.
Another interesting aspect about Flowserve is that it makes constant efforts to enhance product line and improve distribution channels. The company invested $31.7 million during the first half of 2018, which has improved the long-term growth potential.
For 2018, the company anticipates rewarding shareholders with dividends worth $100 million. It also plans to spend $80-$90 million as capital expenditures.
Tactical Initiatives: In a bid to keep costs under control and better utilize manufacturing platforms, Flowserve is working on certain realignment program. The strategies are primarily targeted to reduce backlog, improve on-time delivery, enhance sales process and benefit from relationship with suppliers. These efforts are projected to lower costs in 2018.
In the past 60 days, earnings estimates for these stocks have improved for the current and the next year. Also, average positive earnings surprise in the last four quarters was 6.88% for Barnes Group, 4.37% for IDEX and 29.36% for Chart Industries.
Best Electric Car Stock? You'll Never Guess It.
Zacks Research has released a report that may shock many investors. One stock stands out as the best way to invest in the surge to electric cars. And it's not the one you may think!
Much like petroleum 150 years ago, lithium battery power is set to shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge. With battery prices plummeting and charging stations set to multiply, revenues that were already at $31 billion in 2016 are expected to blast to over $67 billion by the end of 2022.
Image: Bigstock
Here's Why You Should Consider Buying Flowserve (FLS) Now
Industrial Products currently occupies the fourth position among the 16 Zacks sectors. Its performance in the past year has been impressive, evident from 6.2% return recorded during the period.
.jpg)
For 2018, the sector's earnings are predicted to increase 24.2% year over year while its revenues are projected to grow 9.6%. There are many factors that reflect the sector’s solid prospects, a few of which are discussed below:
Industrial production in the United States is on the rise. From a year-over-year growth of 2.8% registered in January 2018, the U.S. industrial production has improved roughly 4.9% in August. This improvement indicates the progress of the industrial sector of the country. Furthermore, a healthy job market, strength in housing markets and improving global economy are beneficial.
Investors interested in reaping benefits from prospects in the sector may choose stocks that carry a Zacks Rank #1 (Strong Buy) or 2 (Buy). Of many investment-friendly options, we believe that adding Flowserve Corporation (FLS - Free Report) to the portfolio is a smart choice. The stock currently carries a Zacks Rank #2 and has a favorable VGM Score of B.
In the past three months, Flowserve’s shares yielded 35.1% return, outperforming 8.6% growth recorded by the industry.
Let's delve deeper and discuss why Flowserve is a suitable investment option.
Bottom-Line Performance & Projections: Flowserve's earnings in the second quarter of 2018 surged 86.4% year over year on the back of solid sales growth, improved operating margin and lower tax rate. For 2018, the company anticipates adjusted earnings per share in the range of $1.50-$1.70. This projection is higher than earnings of $1.36 a year ago.
Driven by solid performance and outlook, the company’s earnings estimates have been increased in the past 60 days. It’s worth noting that eight brokerage firms raised estimates for 2018 and six lifted estimates for 2019. Currently, the Zack Consensus Estimate for earnings is pegged at $1.70 for 2018 and $2.12 for 2019, reflecting growth of 4.9% and 4.4% from the respective 60-day-ago tallies.
Also, the company’s earnings in the next five years are projected to grow 17.3% compared with the industry’s 12.9% rise.
Flowserve Corporation Price and Consensus
Flowserve Corporation Price and Consensus | Flowserve Corporation Quote
Solid Top Line: In the second quarter of 2018, Flowserve’s top-line growth of 11% was driven by organic sales growth and positive impact from movements in foreign currencies. Also, the company recorded sales beat of 5.6%. Aftermarket sales in the quarter grew 12.4% and original equipment sales expanded 9.5%.
For the Engineered Product Division, sales grew 12.4% year over year. Sales for Industrial Product Division and Flow Control Division expanded 7.2% and 11.3%, respectively.
For 2018, the company anticipates revenues to increase 3-6%, against a decline of 8% a year ago. Demand from end markets — including oil & gas, chemical, power and general industries — is likely to be healthy.
The Zacks Consensus Estimate for revenues is pegged at $3.9 billion for 2018 and $4.1 billion for 2019, reflecting year-over-year growth of 6.3% and 4.4%, respectively.
Dividends & Capital Expenditures: Flowserve consistently rewards shareholders handsomely, especially through dividend payments. In the first half of 2018, the company allocated $49.7 million toward the distribution of dividends to shareholders. It's worth mentioning here that the company's dividend payments have increased from 56 cents per share in 2013 to 76 cents in 2017. The quarterly dividend rate is currently at 19 cents. We believe that net income growth in the upcoming quarters will enable the company to continue rewarding shareholders with dividends.
Another interesting aspect about Flowserve is that it makes constant efforts to enhance product line and improve distribution channels. The company invested $31.7 million during the first half of 2018, which has improved the long-term growth potential.
For 2018, the company anticipates rewarding shareholders with dividends worth $100 million. It also plans to spend $80-$90 million as capital expenditures.
Tactical Initiatives: In a bid to keep costs under control and better utilize manufacturing platforms, Flowserve is working on certain realignment program. The strategies are primarily targeted to reduce backlog, improve on-time delivery, enhance sales process and benefit from relationship with suppliers. These efforts are projected to lower costs in 2018.
Other Stocks to Consider
Other top-ranked stocks in the industry are Barnes Group Inc (B - Free Report) , IDEX Corporation (IEX - Free Report) and Chart Industries, Inc (GTLS - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here.
In the past 60 days, earnings estimates for these stocks have improved for the current and the next year. Also, average positive earnings surprise in the last four quarters was 6.88% for Barnes Group, 4.37% for IDEX and 29.36% for Chart Industries.
Best Electric Car Stock? You'll Never Guess It.
Zacks Research has released a report that may shock many investors. One stock stands out as the best way to invest in the surge to electric cars. And it's not the one you may think!
Much like petroleum 150 years ago, lithium battery power is set to shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge. With battery prices plummeting and charging stations set to multiply, revenues that were already at $31 billion in 2016 are expected to blast to over $67 billion by the end of 2022.
See Zacks Best EV Stock Free >>