4-Star Stocks Poised to Pop: Flowserve

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Based on the aggregated intelligence of 135,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, fluid control systems provider Flowserve (NYSE: FLS) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Flowserve's business and see what CAPS investors are saying about the stock right now.

Flowserve facts

Headquarters (founded)

Irving, Texas (1912)

Market Cap

$3.49 billion

Industry

Industrial Machinery

TTM Revenue

$4.50 billion

Management

President/CEO Lewis Kling (since 2005)

CFO Mark Blinn (since 2004)

Compound Annual Revenue and Net Income Growth (over last five years)

14.7% and 57.3%

Dividend Yield

1.7%

Competitors

Eaton (NYSE: ETN)

ITT

CAPS members bullish on FLS also bullish on

Transocean (NYSE: RIG)

PotashCorp (NYSE: POT)

Apple (Nasdaq: AAPL)

CAPS members bearish on FLS also bearish on

Citigroup (NYSE: C)

JPMorgan Chase (NYSE: JPM)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 829 of the 848 members who have rated Flowserve -- some 98% -- believe the stock will outperform the S&P 500 going forward. These bulls include DepthMigration and WhiskeyGirl.

In May, DepthMigration reminded Fools that Flowserve "is an industry leader in pumps and valves." Our CAPS member continues: "Historically, they have concentrated on the [oil & gas] segment, but have diversified successfully and rapidly. I expect them to target what will be a huge, expanding market -- water. Very sensible balance sheet with plenty of free cash flow."

In a pitch from last month, WhiskeyGirl also helped our community stay in the flow:

It might be a boring pick but you have to love the opportunities that global infrastructural spending will create for this company in the longer term. They've been subtly moving toward water with the acquisition of Calder and remain well diversified across a range of sectors; gas, oil, nuclear, chemicals. I've been researching water related stocks for quite a while and nothing has excited me. Too much investor interest. I feel like this is a relatively unnoticed company. They're growth and performance over the past few years is impressive enough to have me purchasing.

What do you think about Flowserve, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 135,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Apple is a Motley Fool Stock Advisor selection. ITT is an Inside Value choice. The Fool owns shares and options of Flowserve. The Fool's disclosure policy always gets a perfect score.

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11/20/2009 4:00 PM
RIG $83.80 Down -1.42 -1.67%
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AAPL $199.92 Down -0.59 -0.29%
Apple, Inc. CAPS Rating: ***
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JPMorgan Chase & C… CAPS Rating: ***
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FLS $101.57 Down -0.43 -0.42%
Flowserve Corp CAPS Rating: *****
POT $114.70 Up +1.53 +1.35%
Potash Corp./Saska… CAPS Rating: ****

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