Trade-Ideas: Flowserve Corporation (FLS) Is Today's New Lifetime High Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Flowserve Corporation ( FLS) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Flowserve Corporation as such a stock due to the following factors:

  • FLS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $59.5 million.
  • FLS has traded 864,442 shares today.
  • FLS is trading at a new lifetime high.

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More details on FLS:

Flowserve Corporation engages in the design, manufacture, distribution, and service of industrial flow management equipment. The stock currently has a dividend yield of 1%. FLS has a PE ratio of 18.6. Currently there are 8 analysts that rate Flowserve Corporation a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Flowserve Corporation has been 1.1 million shares per day over the past 30 days. Flowserve has a market cap of $8.2 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.84 and a short float of 2.5% with 3.59 days to cover. Shares are up 20.7% year to date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Flowserve Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, increase in net income and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 17.8%. Since the same quarter one year prior, revenues slightly increased by 4.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 27.27% and other important driving factors, this stock has surged by 37.74% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, FLS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • FLOWSERVE CORP has improved earnings per share by 27.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, FLOWSERVE CORP increased its bottom line by earning $2.86 versus $2.55 in the prior year. This year, the market expects an improvement in earnings ($3.40 versus $2.86).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Machinery industry average. The net income increased by 12.2% when compared to the same quarter one year prior, going from $107.32 million to $120.39 million.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. When compared to other companies in the Machinery industry and the overall market, FLOWSERVE CORP's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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