With federal spending bills focusing on infrastructure starting to pay out, companies like Flowserve are positioned for growth. On Tuesday, the Relative Strength (RS) Rating for Flowserve stock got an upgrade from 68 to 71, a welcome improvement. The company will report Q4 results next week.
As its stock Relative Strength Rating rises, Irving, Texas-based Flowserve's other ratings already show it's one of the top stocks to watch overall. It has an outstanding 93 Composite Rating, out of a best-possible 99. Additionally, it carries an 86 Earnings Per Share Rating and a B SMR Rating (sales + profit margins + return on equity) on an A-to-E scale with A tops.
One area to watch is its C Accumulation/Distribution Rating, which shows that about as many funds are buying Flowserve stock as selling. However, there is rising interest among big money investors. The number of funds holding FLS stock rose from 565 in June to 616 in December.
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Flowserve Stock Has Been A Steady Eddie Climber
Flowserve produces engineered and industrial pumps, seals and valves, and offers a range of related flow management services.
Flowserve stock has advanced steadily over the last couple of years, forming a series of cup bases and flat bases. From a late September 2022 intraday low 23.92 it's risen more than 70% to above 41 Tuesday afternoon, down for the day. On Monday it briefly rose above a 41.99 buy point of a flat base but gave that up Tuesday amid an overall market retreat.
Earnings grew 456% last quarter to 50 cents per share, vs. 9 cents a year earlier. The prior three innings its earnings growth rate rose from 40% to 471%, then 73%. Revenue growth also rose in its latest quarter, from 22% the prior quarter to 25%, or $1.095 billion.
Earnings Report Due In A Week
The company says on its website it will hold a conference call at 11 a.m. ET on Feb. 21 to discuss fourth quarter and full-year results.
When Flowserve reported Q3 results on Oct. 25, CEO Scott Rowe said in the earnings release, "The combination of our improved operating performance and our positive market outlook gives us the confidence to increase our full year revenue and adjusted EPS guidance range for the third time this year."
Flowserve stock earns the No. 13 rank among its peers in the Machinery-General Industrial industry group. Tennant and Ingersoll Rand are among the group's highest-rated stocks. The group as a whole ranks a strong No. 27 on IBD's list of 197 industry groups.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
The exclusive Relative Strength Rating from Investor's Business Daily tracks market leadership with a 1 (worst) to 99 (best) score. The grade shows how a stock's price behavior over the last 52 weeks compares to all the other stocks in our database.
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