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Management raised its fiscal 2008 EPS forecast to a target range of $5.90 to $6.20 from its previous estimate of $5.10 to $5.40. The company is encouraged by its first-quarter results and its continued strength in key markets, and remains confident in its ability to successfully carry out its operational excellence initiatives to increase its performance in the current global environment. Bear in mind, however, that the recent surge in commodity costs is a challenge to the machinery industry as a whole and could therefore affect Flowserve's results in the future.

Cummins (CMI - Cramer's Take - Stockpickr) designs, manufactures, distributes and services diesel and natural gas engines, electric power generation systems and engine-related products. These products include filtration emissions solutions, fuel systems, controls and air-handling systems. The company is headquartered in Columbus, Ind., and serves customers in more than 160 countries through a network of 550 company-owned and independent distributor facilities and more than 5,000 dealer locations.

Cummins has been rated a buy since March 2004. Despite a somewhat disappointing return on equity of 22% in the most recent quarter, we are impressed by the company's revenue growth, stock-price performance, and improved earnings per share. For the first quarter of fiscal 2008, Cummins' revenues rose 23% year over year. This appears to have helped boost EPS, which improved 37% to 97 cents in the first quarter. Net income rose 33% to $190 million. Cummins also reported strong performances across all business segments, particularly from international markets, which accounted for 57% of the company's first-quarter sales and helped offset rising commodity prices and sluggishness in some U.S. consumer-related markets.