Flowserve Corp. (FLS) is bullish about power generation opportunities coming in 2026. The stock was recently trading at a new five-year high, but pulled back amid market volatility, falling 8%. Still, it’s up double digits year-to-date, observes Tracey Ryniec, senior stock strategist at Zacks Investment Research.
Flowserve is a leading provider of fluid motion and control products and services. The Zacks Rank #1 (Strong Buy) stock is expected to grow earnings by the double-digits in 2026. Five estimates have been revised higher for 2026 since its last earnings report, pushing the Zacks Consensus up to $4.11 from $3.93. That’s earnings growth of 12.4% as the company only made $3.64 last year.
Source: Zacks Investment Research
The year 2027 is also looking bullish. One estimate was just revised in a recent week, while three were revised higher in the last month. The Zacks Consensus has jumped to $4.67 from $4.26. That represents another 14.2% in earnings growth.
Flowserve is also attractively priced. It’s trading with a forward price-to-earnings (P/E) ratio of 21. Given that other AI infrastructure stocks are trading in their 30s, it is a value.
Plus, the company is shareholder friendly. On Feb. 13, Flowserve announced its board had voted to raise the quarterly dividend by 5% to $0.22. It's yielding about 1%.
For those looking for an AI infrastructure stock that is attractively valued and has double-digit earnings growth, Flowserve should be on your short list.
