FlowServe (FLS) has popped up with unusual call buys a few times currently with 1550 February $65 calls bought in open interest, a buyer of 750 December $65 calls on 10/7 up 68% and a buyer of 1000 June $75 calls on 1/30/25. FLS has a very strong trend with shares up 53% over the past year and trading near a decade high.

FLS designs, manufactures, distributes, and services industrial flow management equipment through Flowserve Pump Division (FPD) and Flow Control Division (FCD) segments.

FLS has a market cap of $8.25B and trades 19.35X Earnings, 23.45X FCF and 13.1X EBITDA with consistent 5-7% annual topline growth and 20% EPS growth seen in FY25 after 28.5% growth in FY24. FLS next reports 2-18. FLS sees strong growth potential in its power, decarbonization, and aftermarket businesses. Flowserve sees a healthy acquisition pipeline and plans to pursue more programmatic acquisitions that align with its 3D (Diversify, Decarbonize, Digitize) strategy. Flowserve sees strong growth potential in its power end markets, including traditional power, nuclear power, and renewable power. Decarbonization continues to be a key growth driver for Flowserve, with this business growing at around 30% per year globally, though the growth may slow in the US due to potential changes to the Inflation Reduction Act. Flowserve expects its operational excellence initiatives to deliver 100-200 basis points of margin expansion by 2027, and its portfolio excellence initiatives to potentially deliver over 200 basis points of margin expansion by 2027.

RBC believes Flowserve’s should be a winner in Trump’s second term given its 38% exposure to oil and gas.