Gordon Reid Fluor Corp. FLR-N PAST TOP PICK Nov 19, 2024

The world renowned engineering company stock has been sliding, despite recently reporting $1.8 billion net income and  an 11% increase in revenue — which fell marginally short of analyst expectations.  The company has a long runway of projects including a LNG export project in Canada.  It trades at 12x earnings, 1.6x book and supports a robust 72% ROE.  We recommend setting a stop-loss at $29, looking to achieve $52 — upside potential over 40%.  Yield 0%

We reiterate this global infrastructure company, involved in energy, construction and data centres, as a TOP PICK.  It trades at 12x earnings, 1.5x book and supports a robust 72% ROE.  We recommend maintaining a tight stop at $29, looking to achieve $47 -- upside potential of 36%.  Yield 0.4%

Our PAST TOP PICK with FLR is progressing well.  To remain disciplined, we recommend trailing up the stop (from $29) to $32 at this time.  

Our PAST TOP PICK with FLR has achieved its target at $47.  To remain disciplined, we recommend covering half the position at this time and trailing up the stop (from $32) to $36.  

Our PAST TOP PICK with FLR is progressing well.  To remain disciplined, we recommend trailing up the stop (from $36) to $44 at this time.  

Our PAST TOP PICK with FLR is progressing well.  To remain disciplined, we recommend trailing up the stop (from $44) to $48 at this time.  

Our PAST TOP PICK with FLR has triggered its stop at $48.  To remain disciplined, we recommend covering the position at this time.  Combined with our previous guidance, this will result in a net investment gain of 35%.