We recently published a list of the Analysts Are Bullish On These 10 Stocks For 2025, Here’s Why. In this article, we are going to take a look at where Flowserve Corporation (NYSE:FLS) stands against the other stocks that analysts are bullish for 2025.
US stocks registered a great start to the week with the S&P 500 index registering a gain of 100 points to close at +1.76%. The Nasdaq index, which had taken a beating recently, also registered a 2.2% gain. The renewed optimism comes as analysts price in rather moderate tariffs, much more lenient than originally thought.
Wall Street analysts continuously evaluate stocks based on recent earnings, market outlook, and economic trends. When they find a stock with a potential upside, they adjust their rating accordingly. 2025 has started off with extreme volatility but analyst upgrades continue to provide investors with a reliable source to pick up their next stock for the year.
We decided to look at what stocks the analysts are looking at and why they are bullish on these stocks. We then looked at the catalysts that could trigger this upside and came up with this list. For this top 10 list, we only considered stocks with a market cap of at least $5 billion.
A group of industrial workers in coveralls operating a large scale pump system in a factory.
Flowserve Corporation (NYSE:FLS)
Flowserve Corporation (NYSE:FLS) is a designer, manufacturer, distributor, and supporter of industrial flow management equipment. The company operates through the Flow Control Division (FCD) and Flowserve Pump Division (FPD) segments.
Analysts at financial services firm Baird upgraded Flowserve (NYSE:FLS) from Neutral to Outperform and assigned it a target price of $71. They think FLS’s current valuation does not fully represent its growth potential. A 530-550 basis point improvement in margins by 2027 could significantly change the company’s profitability. This margin improvement is driven by steady revenue growth, strategic initiatives aimed at enhanced operational efficiency, sustainable pricing, and a strong backlog. The research firm predicts revenue growth to remain strong, fueled by the consistent demand:
“Flowserve’s improving free cash flow conversion and growing track record of operational execution further strengthen the bullish case. The company’s long-term adjusted EBIT margin target of about 16% is increasingly achievable with additional upside potential.”
Flowserve (NYSE:FLS) presented a positive future outlook of the company based on the recent Q4 2024 results. As per the guidance, the company forecasts 3% to 5% organic sales growth in 2025. The anticipated adjusted EPS for 2025 is $3.10 to $3.30, representing a 22% growth at the midpoint YoY, compared to the previous year’s result.
Overall, FLS ranks 6th on our list of stocks that analysts are bullish for 2025. While we acknowledge the potential of FLS as a leading investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as FLS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
