We have issued an updated research report on Fluor Corporation FLR on May 22, 2015. The company has been maintaining solid track record of receiving awards, and management remains optimistic about continuation of this trend in future as well, which is expected to drive growth.

The company won several awards in first quarter, especially in its oil & gas segment that includes Nexus pipeline project for Spectra in the U.S. and an EPC award from Suncor in Canada. Further, the company is known for completing projects on time, thereby ensuring client satisfaction. The company strives hard to complete all its projects on schedule, while meeting or in fact exceeding the client specifications. Moreover, the company’s cost-control strategies provide it with an additional edge over competitors.

However, Fluor has been suffering from low performance of its Industrial & Infrastructure segment, which is its major revenue driver. The segment has been witnessing weakness for the past few quarters owing to a decline in contributions from its mining and metals business line. Due to this, the company’s first-quarter 2015 revenues dipped by around 16%. If the sluggish growth trend in the global mining industry continues, Fluor’s business can face further negative impact.

Echoing similar sentiments, over the last 30 days, the Zacks Consensus Estimate for 2015 and 2016 earnings per share decreased by 4 and 5 cents to $4.44 and $4.47, respectively.  The stock currently carries a Zacks Rank #3 (Hold)

Stocks to Consider

Some better-ranked stocks in the same sector include II-VI Incorporated IIVI, Capstone Turbine Corp. CPST and AO Smith Corp. AOS. While II-VI sports a Zacks Rank #1 (Strong Buy), Capstone Turbine and AO Smith have a Zacks Rank #2 (Buy).

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CAPSTONE TURBIN (CPST): Free Stock Analysis Report
 
FLUOR CORP-NEW (FLR): Free Stock Analysis Report
 
SMITH (AO) CORP (AOS): Free Stock Analysis Report
 
II-VI INCORP (IIVI): Free Stock Analysis Report
 
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