FLS Should I Buy
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Flowserve Corp (FLS) is not a strong buy at the moment for a beginner investor with a long-term focus. While the company has positive catalysts such as hedge fund buying and bullish moving averages, the recent financial performance shows significant declines in net income and EPS, which raises concerns. Additionally, the lack of strong trading signals and mixed analyst sentiment further supports a hold recommendation.
The technical indicators show mixed signals. The MACD is positive but contracting, suggesting weakening momentum. RSI is neutral at 40.589, and the moving averages are bullish (SMA_5 > SMA_20 > SMA_200). However, the stock is trading below the pivot level of 79.345, with key support at 74.238 and resistance at 84.452.
Hedge funds are significantly increasing their buying activity, with a 262.44% increase in the last quarter. Analysts have highlighted the company's margin expansion potential and its alignment with broader energy sector trends, including nuclear energy.
The company's financial performance in Q4 2025 showed a significant decline in net income (-137.39% YoY) and EPS (-138.98% YoY). Additionally, the options market shows bearish sentiment, and the stock trend analysis predicts potential short-term declines (-3.64% in the next week, -9.88% in the next month).
In Q4 2025, revenue increased by 3.54% YoY to $1.22 billion, but net income dropped significantly to -$28.99 million (-137.39% YoY), and EPS fell to -0.23 (-138.98% YoY). Gross margin improved to 35.94%, up 10.55% YoY.
Analysts have mixed views. Most maintain a Buy rating, with price targets ranging from $86 to $102. Recent updates show slight downward adjustments in price targets, reflecting cautious optimism. Analysts highlight the company's margin expansion and nuclear energy exposure as positives but note limited near-term catalysts.
