Great Earnings from Fluor and Flowserve

After the bell yesterday, two of my favorite stocks reported very good earnings. Fluor (FLR), a construction company heavily involved in oil and gas, reported fourth-quarter earnings of $1.04 a share which was 12 cents better than forecasts. Operating profits rose 30% over last year. The company sees 2009’s earnings between $3.90 and $4.20 per share.

At the current price, Fluor is going for less than 10 times forward earnings–that’s a good value. The stock is currently up about 8% today. Fluor is a strong buy up to $41 in my Blue Chip Growth Letter.

As well as Fluor is doing, Flowserve (FLS) is doing even better. The stock is currently up 15% today. The company makes pumps, valves and mechanical seals. For the fourth quarter, Flowserve reported earnings of $2.03 a share which beat the Street’s estimates of $1.89 a share. The company also reaffirmed its earnings outlook for this year of $6.75 to $7.50 a share. On top of that, Flowserve raised its dividend by 8%. CEO Lewis Kling said, “Our strong customer relationships, the industry’s broadest product portfolio of flow management solutions and the strength in our global engineering platform all give us confidence in handling the challenges of the current macro-economic uncertainty.”

This is very good news. Flowserve is a strong buy in my Emerging Growth service which focuses on small-cap, high-growth stocks. Flowserve is a buy up to $67.

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