Flowserve CorporationFLS , which holds a diversified mix of products, end markets and geographies, remains highly optimistic about investment projects that will be conducted on a global platform in 2015. In particular, strong prospects of the U.S. chemical market business, strong investment prospects in Asian and European markets and surging investments in solar and conventional power in Middle East are likely to be the key growth drivers for the company.
Moreover, the company has always been in the good books of investors by consistently endeavoring towards wealth enhancement. In 2014, Flowserve returned $332 million to shareholders through share repurchases and dividends - which signify 64% of its net income. Also, during the last reported quarter, the company announced a sequential increase of 12.5% in its quarterly dividend.
However, the current volatility in the Oil and Gas market, with oversupply continuing to pressure the prices and spending levels, is expected to affect the company's projects and orders. Further, management expects the existing price levels to reduce demand for upstream oil and gas projects, thus, increasing its risk.
Also, Flowserve's anticipates the currency headwinds, fueled by the strengthening of U.S. dollar, to continue in the upcoming quarters, weighing on its business profitability. Additionally, the company expects its 2015 financials to face challenges due to tough year-over-year comparisons.
To gain deeper insight into Flowserve, you can refer to our updated research report, which was issued on Mar 17, 2015.
Over the last 30 days, the Zacks Consensus Estimate for 2015 earnings rose by 0.3% to $3.72 per share. However, for 2016, it dipped by 5% to $4.05 per share. The stock currently has a Zacks Rank #3 (Hold).
Stocks That Warrant a Look
Better-ranked stocks worth considering in the same sector include Dycom Industries Inc. DY , Willdan Group, Inc. WLDN and Pernix Group Inc PRXG . While Dycom and Willdan carry a Zacks Rank #1 (Strong Buy), Pernix Group has a Zacks Rank #2 (Buy).
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