TechnipFMC Stock Rallies to 52-Week High: Buy, Hold or Sell?

Core Viewpoint - TechnipFMC plc has demonstrated strong stock performance in 2024, with shares up nearly 50% year-to-date, outperforming the S&P 500 and peers like Oceaneering International and Core Labs [1][4]. Company Overview - TechnipFMC, formed from the merger of Technip and FMC Technologies in January 2017, provides products, services, and integrated technology solutions for the energy industry, focusing on subsea, onshore/offshore, and surface projects [5]. Fundamental Strength - The company's total backlog reached $14.7 million in Q3 2024, an 11.1% increase from the previous year, indicating strong revenue visibility and margin improvements [6]. - TechnipFMC raised its 2025 revenue outlook for the Subsea segment to $8.3-$8.7 billion, up from $8 billion, driven by an expected adjusted EBITDA margin increase to 18.5-20% [6]. - The company secured significant contracts with Petrobras and bp, enhancing its market position in high-demand regions like Brazil and the Gulf of Mexico [6]. Technological Advancements - TechnipFMC's Subsea 2.0 platform is expected to see fast-track adoption, offering a new suite of products that improve project economics and environmental sustainability [7]. Shareholder Returns - The company announced a $1 billion increase in share repurchase authorization, totaling $1.2 billion, aiming to nearly double shareholder distributions for 2024 compared to the previous year [8]. Analyst Estimates - TechnipFMC has a Value and Growth Score of B, with earnings revisions trending positively; the 2024 profit estimate increased from $1.37 to $1.55, and the 2025 projection rose from $1.90 to $1.96 [10]. Stock Performance - Over the last three years, TechnipFMC shares surged by 374%, significantly outperforming the S&P 500's 25.5% gain and the Zacks Oil/Energy sector's 41.4% growth [13]. Investment Consideration - Given the strong project awards and growing backlog, it is suggested that investors consider buying shares of TechnipFMC, as these factors indicate strong long-term cash flows and potential for higher stock prices [14].