Analysis of High-Risk Investment Opportunities
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy FLR?
Source: Fool
- Fluor's Outlook: Fluor (FLR) is expected to see a nearly 4% decline in full-year revenue for 2023, yet the urgency of infrastructure projects may drive a stock rebound, currently priced at $47.04 with a market cap of $7.6 billion, indicating potential for future growth.
- Rising Cybersecurity Demand: Palo Alto Networks (PANW) anticipates a 14% revenue growth this year and 13% next year, amidst a surge in data breaches to 3,322, highlighting strong demand for high-level cybersecurity services, with a current stock price of $159.43.
- IBM's Recovery: International Business Machines (IBM) achieved a 12% year-over-year growth last quarter, primarily driven by sales of AI-capable mainframes and software, with a current stock price of $299.04 and a market cap of $279 billion, indicating its strengthening competitiveness in the AI sector.
- Investor Confidence: Despite Fluor and Palo Alto Networks not sustaining stock price increases, analysts remain optimistic about their prospects, particularly for Palo Alto, which has a price target of $228.79, suggesting a 37% upside from its current price.
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Analyst Views on FLR
Wall Street analysts forecast FLR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FLR is 49.25 USD with a low forecast of 40.00 USD and a high forecast of 57.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
3 Buy
3 Hold
0 Sell
Moderate Buy
Current: 44.970
Low
40.00
Averages
49.25
High
57.00
Current: 44.970
Low
40.00
Averages
49.25
High
57.00
About FLR
Fluor Corporation is a holding company that provides engineering, procurement, construction (EPC), fabrication and modularization, and project management services. The Company's segments include Energy Solutions, Urban Solutions and Mission Solutions. The Energy Solutions segment provides EPC services for traditional oil and gas markets, including the production and fuels, chemicals, LNG and power markets. The segment serves these industries with comprehensive project life-cycle services. The Urban Solutions segment provides EPC and project management services to the advanced technologies and manufacturing, life sciences, mining and metals, infrastructure industries and professional staffing services. The Mission Solutions segment provides high-end technical solutions to the United States and other governments. These include, among others, the DOE, the Department of Defense, FEMA and intelligence agencies. The segment also provides services to commercial nuclear clients.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Analysis of High-Risk Investment Opportunities
- Fluor's Outlook: Fluor (FLR) is expected to see a nearly 4% decline in full-year revenue for 2023, yet the urgency of infrastructure projects may drive a stock rebound, currently priced at $47.04 with a market cap of $7.6 billion, indicating potential for future growth.
- Rising Cybersecurity Demand: Palo Alto Networks (PANW) anticipates a 14% revenue growth this year and 13% next year, amidst a surge in data breaches to 3,322, highlighting strong demand for high-level cybersecurity services, with a current stock price of $159.43.
- IBM's Recovery: International Business Machines (IBM) achieved a 12% year-over-year growth last quarter, primarily driven by sales of AI-capable mainframes and software, with a current stock price of $299.04 and a market cap of $279 billion, indicating its strengthening competitiveness in the AI sector.
- Investor Confidence: Despite Fluor and Palo Alto Networks not sustaining stock price increases, analysts remain optimistic about their prospects, particularly for Palo Alto, which has a price target of $228.79, suggesting a 37% upside from its current price.
See More
Nuclear Energy Returns to Spotlight, Investors Focus on Key Players
- NuScale Power Struggles: NuScale Power's stock has declined approximately 30% over the past year, although it rebounded over 20% since early 2026; however, concerns arose after major investor Fluor sold its stake and the company missed earnings expectations, undermining confidence in its technological promises.
- Oklo's Strong Momentum: Oklo's stock skyrocketed in 2025 despite significant volatility, and its partnership with Meta has provided substantial market credibility, positioning it for continued strong growth into 2026.
- Financial Comparison: Oklo boasts around $1.2 billion in cash and marketable securities, significantly outpacing NuScale, which relies on limited engineering revenue and has yet to achieve profitability, thus facing greater financial pressure.
- Technological Development Paths: While NuScale is further along in technology development, it must transition from engineering revenue to actual contract deployment, whereas Oklo is gaining market recognition through partnerships with hyperscalers, potentially making it the winner in the next decade.
See More
Nuclear Market Recovery: Promising Prospects for Cameco and NuScale
- Market Recovery: Following a decade-long slump post-Fukushima, the nuclear energy market is rebounding due to rising power demands and AI market expansion, with global nuclear capacity projected to increase by 2.6 times by 2050.
- Cameco's Growth Potential: As the world's second-largest uranium miner, Cameco's uranium price has surged from $18 per pound in 2016 to $94, with expectations to reach $100, prompting the company to restart idled mines to meet demand; analysts forecast revenue and EPS growth of 9% and 91%, respectively, from 2024 to 2027.
- NuScale's Innovation: NuScale's small modular reactors (SMRs) are designed for deployment in areas unsuitable for conventional reactors; while still in the front-end engineering phase, a contract with the Tennessee Valley Authority will facilitate expansion before 2032.
- Investment Value: Despite Cameco's P/E ratio of 69 and NuScale's P/S ratio of 37, both companies' strategic investments and growing market demand may support their high valuations, positioning them as key players in the future of nuclear energy.
See More
Fluor Stock Surges 16.6% as Investor Confidence Grows
- Stock Rebound: Fluor's stock surged 16.6% in January 2026 after a nearly 20% decline in 2025, indicating a rebound in investor confidence, particularly due to the growth in its business backlog.
- Growing Backlog: As of Q3 2023, Fluor's Urban Solutions segment had a backlog exceeding $20 billion, representing about 75% of the company's total backlog, highlighting its significant market share in fast-growing sectors.
- Long-Term Project Outlook: Fluor anticipates approximately $90 billion in new project awards over the next several years, with earnings from these projects not expected until at least 2027, laying a solid foundation for long-term growth.
- Investment Return Potential: Fluor's investment in NuScale Power yielded over $400 million, strengthening its financial position and allowing a focus on core operations, which is expected to drive future business growth.
See More
Analysis of Fluor's Investment in NuScale Power
- NuScale Investment Update: Fluor was an early investor in NuScale Power, which aims to build small modular nuclear reactors, and is positioning itself as a key partner in construction projects, particularly in Romania, indicating its strategic focus in the nuclear energy sector.
- Equity Monetization Plan: Fluor plans to sell the remainder of its NuScale stake in 2026, having already generated $605 million from stock sales in late 2025; while this transaction strengthens the balance sheet, it does not alter Fluor's core business model.
- Contract Structure Improvement: The management is addressing the issues with fixed-price contracts, with 82% of its backlog now consisting of reimbursable contracts, and 99% of the $3.4 billion in contracts signed in Q3 2025 being reimbursable, which will enhance business consistency.
- Cyclical Industry Risks: Despite improvements in contract structures, the construction industry remains inherently cyclical, with economic downturns leading to project delays or cancellations, necessitating careful evaluation of Fluor's performance amid economic fluctuations.
See More
Fluor's Investment in NuScale Power: Implications and Insights
- Investment Overview: Fluor's investment in NuScale Power is set to monetize in 2026 with the sale of remaining shares expected to generate $605 million in net proceeds, which, while a one-time event, will strengthen the company's balance sheet.
- Contract Structure Improvement: Management is addressing past issues with fixed-price contracts, with 82% of its backlog now using reimbursable contracts, and 99% of the $3.4 billion in contracts signed in Q3 2025 being reimbursable, enhancing business consistency.
- Cyclical Industry Challenges: Despite Fluor's strong performance, the cyclical nature of the construction industry means that economic downturns can lead to project delays or cancellations, posing challenges to the company's long-term investment appeal.
- Investment Caution: Analysts have noted that Fluor is not included in the current list of top investment stocks, suggesting that investors should exercise caution when considering Fluor, especially in light of potential economic fluctuations, and may want to seek more stable investment alternatives.
See More
Analysis of High-Risk Investment Opportunities
- Fluor's Outlook: Fluor (FLR) is expected to see a nearly 4% decline in full-year revenue for 2023, yet the urgency of infrastructure projects may drive a stock rebound, currently priced at $47.04 with a market cap of $7.6 billion, indicating potential for future growth.
- Rising Cybersecurity Demand: Palo Alto Networks (PANW) anticipates a 14% revenue growth this year and 13% next year, amidst a surge in data breaches to 3,322, highlighting strong demand for high-level cybersecurity services, with a current stock price of $159.43.
- IBM's Recovery: International Business Machines (IBM) achieved a 12% year-over-year growth last quarter, primarily driven by sales of AI-capable mainframes and software, with a current stock price of $299.04 and a market cap of $279 billion, indicating its strengthening competitiveness in the AI sector.
- Investor Confidence: Despite Fluor and Palo Alto Networks not sustaining stock price increases, analysts remain optimistic about their prospects, particularly for Palo Alto, which has a price target of $228.79, suggesting a 37% upside from its current price.
See More
Nuclear Energy Returns to Spotlight, Investors Focus on Key Players
- NuScale Power Struggles: NuScale Power's stock has declined approximately 30% over the past year, although it rebounded over 20% since early 2026; however, concerns arose after major investor Fluor sold its stake and the company missed earnings expectations, undermining confidence in its technological promises.
- Oklo's Strong Momentum: Oklo's stock skyrocketed in 2025 despite significant volatility, and its partnership with Meta has provided substantial market credibility, positioning it for continued strong growth into 2026.
- Financial Comparison: Oklo boasts around $1.2 billion in cash and marketable securities, significantly outpacing NuScale, which relies on limited engineering revenue and has yet to achieve profitability, thus facing greater financial pressure.
- Technological Development Paths: While NuScale is further along in technology development, it must transition from engineering revenue to actual contract deployment, whereas Oklo is gaining market recognition through partnerships with hyperscalers, potentially making it the winner in the next decade.
See More
Nuclear Market Recovery: Promising Prospects for Cameco and NuScale
- Market Recovery: Following a decade-long slump post-Fukushima, the nuclear energy market is rebounding due to rising power demands and AI market expansion, with global nuclear capacity projected to increase by 2.6 times by 2050.
- Cameco's Growth Potential: As the world's second-largest uranium miner, Cameco's uranium price has surged from $18 per pound in 2016 to $94, with expectations to reach $100, prompting the company to restart idled mines to meet demand; analysts forecast revenue and EPS growth of 9% and 91%, respectively, from 2024 to 2027.
- NuScale's Innovation: NuScale's small modular reactors (SMRs) are designed for deployment in areas unsuitable for conventional reactors; while still in the front-end engineering phase, a contract with the Tennessee Valley Authority will facilitate expansion before 2032.
- Investment Value: Despite Cameco's P/E ratio of 69 and NuScale's P/S ratio of 37, both companies' strategic investments and growing market demand may support their high valuations, positioning them as key players in the future of nuclear energy.
See More
Fluor Stock Surges 16.6% as Investor Confidence Grows
- Stock Rebound: Fluor's stock surged 16.6% in January 2026 after a nearly 20% decline in 2025, indicating a rebound in investor confidence, particularly due to the growth in its business backlog.
- Growing Backlog: As of Q3 2023, Fluor's Urban Solutions segment had a backlog exceeding $20 billion, representing about 75% of the company's total backlog, highlighting its significant market share in fast-growing sectors.
- Long-Term Project Outlook: Fluor anticipates approximately $90 billion in new project awards over the next several years, with earnings from these projects not expected until at least 2027, laying a solid foundation for long-term growth.
- Investment Return Potential: Fluor's investment in NuScale Power yielded over $400 million, strengthening its financial position and allowing a focus on core operations, which is expected to drive future business growth.
See More
Analysis of Fluor's Investment in NuScale Power
- NuScale Investment Update: Fluor was an early investor in NuScale Power, which aims to build small modular nuclear reactors, and is positioning itself as a key partner in construction projects, particularly in Romania, indicating its strategic focus in the nuclear energy sector.
- Equity Monetization Plan: Fluor plans to sell the remainder of its NuScale stake in 2026, having already generated $605 million from stock sales in late 2025; while this transaction strengthens the balance sheet, it does not alter Fluor's core business model.
- Contract Structure Improvement: The management is addressing the issues with fixed-price contracts, with 82% of its backlog now consisting of reimbursable contracts, and 99% of the $3.4 billion in contracts signed in Q3 2025 being reimbursable, which will enhance business consistency.
- Cyclical Industry Risks: Despite improvements in contract structures, the construction industry remains inherently cyclical, with economic downturns leading to project delays or cancellations, necessitating careful evaluation of Fluor's performance amid economic fluctuations.
See More
Fluor's Investment in NuScale Power: Implications and Insights
- Investment Overview: Fluor's investment in NuScale Power is set to monetize in 2026 with the sale of remaining shares expected to generate $605 million in net proceeds, which, while a one-time event, will strengthen the company's balance sheet.
- Contract Structure Improvement: Management is addressing past issues with fixed-price contracts, with 82% of its backlog now using reimbursable contracts, and 99% of the $3.4 billion in contracts signed in Q3 2025 being reimbursable, enhancing business consistency.
- Cyclical Industry Challenges: Despite Fluor's strong performance, the cyclical nature of the construction industry means that economic downturns can lead to project delays or cancellations, posing challenges to the company's long-term investment appeal.
- Investment Caution: Analysts have noted that Fluor is not included in the current list of top investment stocks, suggesting that investors should exercise caution when considering Fluor, especially in light of potential economic fluctuations, and may want to seek more stable investment alternatives.
See More
