What Happened?

Shares of flow control equipment manufacturer Flowserve (NYSE:FLS) fell 9.8% in the pre-market session after the company reported disappointing fourth-quarter results: Its EPS missed significantly, and its revenue fell short of Wall Street's estimates. On the other hand, Flowserve blew past analysts' backlog expectations this quarter. Still, this was a weaker quarter.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Flowserve? Access our full analysis report here, it’s free.

What The Market Is Telling Us

Flowserve’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

Flowserve is up 3% since the beginning of the year, and at $59.07 per share, it is trading close to its 52-week high of $64.75 from January 2025. Investors who bought $1,000 worth of Flowserve’s shares 5 years ago would now be looking at an investment worth $1,297.

Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.