) hit a 52-week high of $73.89 during yesterday's trading
session. However, the stock closed the session at $73.66, which
reflects a solid year-to-date return of 45.4%. The average
trading volume for the last three months aggregated 1,041,027
Despite its strong price appreciation, this Zacks Rank #2
(Buy) stock still has enough potential to drive the stock
further. Its strong estimate revisions over the last 60 days and
a long-term EPS growth expectation of 12.5% are some of the
catalysts driving the stock.
Impressive third-quarter 2013 results that comprised higher
sales across its businesses, top-line growth and increased
bookings were the primary driving factors for Flowserve.
On Oct 24, Flowserve reported third-quarter net income of
$126.3 million or 90 cents per share, up from $106.3 million or
69 cents per share in the year-ago quarter.
The company has been making efforts to enhance internal
revenue growth by stabilizing its aftermarket performance,
focusing on supply chain and initiatives like 'One Flowserve' to
improve operational excellence. Furthermore, the company's
ongoing cost-management efforts are adding to the growth. We also
remain encouraged by the record top-line growth of the company
and expect it to continue its bull run in the coming
In addition, the company reported higher margins across all
its segments in the third quarter. The rise in segment gross
margin was primarily driven by significant growth in OE (Original
Equipments) bookings, better execution of operational plans and
Flowserve aims to strategically deploy cash on long-term
projects that are likely to add to shareholder wealth, including
Over the last 60 days, 7 out of 13 estimates for 2013 have
been revised upward while none were revised lower, which led to a
1.5% rise in the Zacks Consensus Estimate to $3.45 per share. For
2014, 6 out of 13 estimates moved upward, advancing the Zacks
Consensus Estimate by 2.6% to $3.95 per share.
Other Stocks to Consider
Other stocks that look promising and are worth a look at
DXP Enterprises, Inc.
), each carrying a Zacks Rank #2 (Buy).
DXP ENTERPRISES (DXPE): Free Stock Analysis
FLOWSERVE CORP (FLS): Free Stock Analysis
GRAHAM CORP (GHM): Free Stock Analysis Report
PARKER HANNIFIN (PH): Free Stock Analysis
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