Flowserve(US:FLS) ZACKS·2025-12-04 18:01Core Viewpoint - Flowserve (FLS) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [3][5]. - Institutional investors often adjust their valuations based on earnings estimates, leading to significant stock price movements when estimates are revised [3]. Company Performance and Outlook - The upgrade for Flowserve suggests an improvement in the company's underlying business, which should encourage investors to drive the stock price higher [4]. - For the fiscal year ending December 2025, Flowserve is expected to earn $3.47 per share, with a 2.9% increase in the Zacks Consensus Estimate over the past three months [7]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [6]. - Flowserve's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [9].