Fluor's Stock Soars 55% in 3 Months: Should You Buy the Surge or Wait?

Core Viewpoint - Fluor Corporation (FLR) has experienced a significant share price increase of 54.8% over the past three months, outperforming its industry peers and the broader market indices [1][4]. Group 1: Company Performance - The company is benefiting from strong demand trends in various sectors, including infrastructure projects for data centers, semiconductors, pharmaceuticals, energy transition, fuel production, and mining and metals [3][20]. - Fluor's backlog has reached $28.7 billion, with 79% classified as reimbursable, which reduces project risks and supports long-term margin growth [7][8]. - In Q1 2025, Fluor secured new awards totaling $5.8 billion, indicating a healthy book-to-burn ratio of 1.5x [7][8]. Group 2: Business Strategy - Fluor is transitioning its strategy from "fix and build" to "grow and execute" for the 2025-2028 period, focusing on generating cash and earnings while maintaining financial discipline [9][10]. - The company aims to diversify its business portfolio to stabilize its operations and capitalize on cyclical markets at appropriate times [10]. Group 3: Shareholder Returns - Fluor has committed to returning capital to shareholders, having repurchased $193 million in shares in Q1 2025 and planning additional buybacks totaling $450 million for the year [11][12]. - The stock is currently trading at a discount compared to industry peers, presenting an attractive entry point for investors [13]. Group 4: Market Trends and Risks - The favorable market trends are expected to continue, driven by increased public infrastructure demand and technological advancements [6][20]. - However, Fluor faces challenges such as project delays, currency translation risks, and inflationary pressures, which could impact its growth [5][18][19].