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This summary was created by AI, based on 3 opinions in the last 12 months.

Fluor Corp. (FLR-N) is experiencing a challenging period despite positive earnings, with a reported net income of $1.8 billion and an 11% revenue increase that did not meet analyst expectations. The company is involved in promising projects, particularly a LNG export project in Canada, and boasts a strong return on equity of 72%. However, recent performance has been mixed, as some revenue targets have been missed, possibly due to project delays related to election uncertainties. Nonetheless, analysts hold a generally optimistic view on the company's fundamentals and valuation, highlighting infrastructure investments in the U.S. as a supportive factor for growth. With a stop-loss recommendation at $29 and a target price of $52, the experts see significant upside potential from current levels.

Consensus
Positive
Valuation
Undervalued
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O’Reilly

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%

(Analysts’ price target is $52.89)
PAST TOP PICK
(A Top Pick Nov 24/23, Up 38%)

Had a bit of a speed bump a couple years ago with quick CEO successions. Last couple of years have been good. Last earnings report was not great. Revenues missed. Could be due to project decisions were put on hold for the elections due to uncertainty. Watching to make sure it gets back on track. Some concerns but it is a good quality company.

BUY

Likes the space. Broad infrastructure investments in US will support engineering and construction. Continues to like it on fundamentals and valuation.

TOP PICK

Project management and engineering company. Very strong demand with growing North American economy, Believes old management troubles are behind them. Trading at ~14x earnings, with backlog of projects. Good for long term investors and available at attractive valuation. 

DON'T BUY

re: Biden infrastrcture plan FLR would benefit from Biden's plan, but FLR wouldn't be his first choice. They've had 3 CEOs in the last 2 years and were the subject of an SEC investigation and had to delay their financial statements. They're getting rid of Stock, a subsidiary. Lots of moving parts here. United Rentals, SNC Lavalin and Jacobs Engineering are better.

DON'T BUY

The political risk is prevalent across the industry, as we saw with SNC. There are better opportunities. The business is highly cyclical and subject to government policies. He would stay away, but it is a high quality company in the space.

PAST TOP PICK

(A Top Pick Sep 6/17, Up 28%) He does not like it much anymore and sold it. You have to trust the execution of management. The fact was they had an issue and said it was fixed. They had a follow up issue and then another and he felt it was out of control. It rallied to an attractive sell price.

DON'T BUY

He still likes it, but with it up 50% in a short period of time he feels there is a lot or optimism build into the price. He feels management has botched 3 or 4 projects. Still a good business, but not a buy at this price.

COMMENT

An engineering company. Has been looking at this for the last few years. He passed on it because about half their business is very much tied to the energy industry. They work on a lot of huge mega projects. Energy prices being low has negatively impacted them. The company has massively missed their guidance continuously, for the last couple of years, including their most recent quarterly earnings. Their backlog is declining. The dividend is probably secure.

TOP PICK

A large E&C firm, very global in nature. For many years, their execution was very good. Has gotten more interested in this, because by being highly diversified, they can tackle the largest and most complicated projects globally. Their challenges are twofold. They are market driven. As an example, their mining backlog has fallen by over 90%. It is cyclical, and is much closer to the bottom that it is to the top. Secondly, they’ve made mistakes with some really shoddy execution in some areas. Dividend yield of 2.1%. (Analysts’ price target is $46.50.)

COMMENT

The largest engineering/construction company in the world. If he wanted to own an engineering company, he would be looking at the Canadian ones, because the valuations are very good. At some point, there will be massive spending on engineering in Canada, and he would rather go that route. Prefers Stantec (STN-T).

PARTIAL BUY

This has corrected, so he is tempted. It closed at $46.19, and he has a model price of $41.52. It is 10% lower than the price, but he would like it to correct some more. Would love to buy this at a valuation low of $37.53. He would buy some now, and if there was a further correction, he would buy more.

COMMENT

Will this be a beneficiary of the Trump trade? This is an infrastructure company, so if you want to build dams and dig roads, you would think this would be a natural beneficiary of that. But if you look back to when Obama came in, there was a lot of hype and a lot of noise around infrastructure projects that were going to be done. Very few of them got shovel ready. Good stock and good cyclical if you want to get infrastructure spend, but he does wonder about US commitment. He would take a pause.

COMMENT

Owned this in the past. A global engineering/construction company that is very diversified geographically. Very well-run. She got out because of their end markets in terms of energy and mining, which were in a downturn. When things are stabilizing and improving, this could be a name that she could enter.

COMMENT

This builds large construction projects. You would think that in an environment where we are going to start to see infrastructure spend, that the company should be positioned. It’ll be interesting to see if the US is actually going to dig; start building dams, pipelines, etc. and the actual execution occurs. That is the challenge. He would prefer SNC-Lavalin (SNC-T).

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Fluor Corp.(FLR-N) Rating

Ranking : 3 out of 5

Bullish - Buy Signals / Votes : 2

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 2

Total Signals / Votes : 4

Stockchase rating for Fluor Corp. is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Fluor Corp.(FLR-N) Frequently Asked Questions

What is Fluor Corp. stock symbol?

Fluor Corp. is a American stock, trading under the symbol FLR-N on the New York Stock Exchange (FLR). It is usually referred to as NYSE:FLR or FLR-N

Is Fluor Corp. a buy or a sell?

In the last year, 4 stock analysts published opinions about FLR-N. 2 analysts recommended to BUY the stock. 2 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Fluor Corp..

Is Fluor Corp. a good investment or a top pick?

Fluor Corp. was recommended as a Top Pick by on . Read the latest stock experts ratings for Fluor Corp..

Why is Fluor Corp. stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Fluor Corp. worth watching?

4 stock analysts on Stockchase covered Fluor Corp. In the last year. It is a trending stock that is worth watching.

What is Fluor Corp. stock price?

On 2025-04-01, Fluor Corp. (FLR-N) stock closed at a price of $36.35.