Yahoo Finance Flowserve (FLS) Wins Contract to Supply Pumps to TMGcore
Flowserve Corporation FLS recently secured a contract from Texas-based TMGcore, Inc. to supply industrial process pumps. Financial terms of the contract were not disclosed by the parties involved.
Flowserve’s share price increased 1.9% yesterday, eventually closing the session at $29.6.
Inside the Headlines
Per the deal, Flowserve, in collaboration with AGI Industries, will be responsible for delivering 5,000 units of industrial process pumps to TMGcore. FLS’s pumps will be used in TMGcore’s proprietary and scientifically-built immersion cooling units for circulating dielectric fluids. This will allow temperature reduction of the servers within single-phase immersion-cooled machines.
This partnership fits well with Flowserve’s business development strategy. The deal is also a testimony to FLS's commitment toward driving decarbonization in the society.
Zacks Rank, Price Performance and Earnings Estimate Trend
Flowserve, with a $3.9-billion market capitalization, currently carries a Zacks Rank #5 (Strong Sell). FLS stands to benefit from higher bookings, a strong backlog level and its realignment program in the quarters ahead. However, FLS has been experiencing supply-chain challenges, logistics problems and labor issues for a while. High debt levels can be detrimental as well.
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Shares of Flowserve have lost 11.5% compared with the 13.5% decline of its industry in the past three months.
The Zacks Consensus Estimate for second-quarter 2022 earnings has decreased 39.5% to 26 cents in the past 60 days. Also, earnings estimates for 2022 have moved 14.7% south to $1.51 during the same period.
Zacks Rank & Stocks to Consider
Some better-ranked companies from the industrial products sector are discussed below:
Applied Industrial Technologies, Inc. AIT presently sports a Zacks Rank #1. AIT delivered a trailing four-quarter earnings surprise of 25.4%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AIT’s earnings estimates have increased 5.9% for fiscal 2022 (ending June 2022) in the past 60 days. The stock has dipped 4% in the past three months.
RBC Bearings Incorporated ROLL presently has a Zacks Rank of 1. ROLL delivered a trailing four-quarter earnings surprise of 3.4%, on average.
ROLL’s earnings estimates have increased 9.9% for fiscal 2023 (ending March 2022) in the past 60 days. Its shares have declined 8.2% in the past three months.
Roper Technologies, Inc. ROP presently has a Zacks Rank #2 (Buy). Its earnings surprise in the last four quarters was 2%, on average.
In the past 60 days, ROP’s earnings estimates have increased 1.2% for 2022. The stock has declined 16.9% in the past three months.
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