Market Overview - Wall Street's winning streak continues, driven by positive trade news and strong economic data, with the S&P 500 reaching a record high following a significant trade deal between the United States and Japan, which lowers tariffs and opens up $550 billion in new investments [1] - Retail sales exceeded expectations in June, and jobless claims decreased, indicating a robust labor market and steady consumer spending despite ongoing tariff concerns [1][9] Trade Negotiations and Economic Environment - Progress in trade negotiations with the U.K., Indonesia, and the Philippines, along with positive signals from China and the EU, creates an encouraging backdrop for equities [2] - The current earnings season is contributing to market momentum, suggesting that focusing on relative price strength can help investors identify leading stocks [2] Stock Recommendations - Recommended stocks based on relative price strength include Western Digital Corporation (WDC), Flowserve Corporation (FLS), OPENLANE, Inc. (KAR), AngloGold Ashanti plc (AU), and Jabil Inc. (JBL) [3][9] - These stocks are outperforming their peers, supported by strong relative price strength metrics [9] Relative Price Strength Strategy - Earnings growth and valuation multiples are crucial for assessing a stock's potential returns and its performance relative to peers [4] - Investors are advised to avoid underperforming stocks and focus on those that are outperforming their respective industries or benchmarks [5] Screening Parameters - Stocks are screened based on relative price changes over 12 weeks, 4 weeks, and 1 week, as well as positive current-quarter estimate revisions [8] - Stocks that have shown better performance than the S&P 500 over the last 1 to 3 months and have solid fundamentals are considered for investment [6] Company Profiles - **Western Digital Corporation (WDC)**: Market cap of $23.4 billion, expected EPS growth of 2,465% year-over-year for fiscal 2025, with a trailing four-quarter earnings surprise of approximately 7.3% [11][12] - **Flowserve Corporation (FLS)**: Market cap not specified, expected EPS growth rate of 14.2% over three to five years, with a 22.1% year-over-year growth estimate for 2025 [13][14] - **OPENLANE, Inc. (KAR)**: Market cap of $2.7 billion, expected EPS growth of 17.7% year-over-year for 2025, shares up 44% in a year [14][15] - **AngloGold Ashanti plc (AU)**: Market cap of $21.8 billion, expected EPS growth of 125.8% year-over-year for 2025, shares up 89% in a year [16] - **Jabil Inc. (JBL)**: Market cap not specified, expected EPS growth rate of 16.6% over three to five years, with a 10.6% year-over-year growth estimate for 2025 [17][18]

Core Viewpoint - Flowserve (FLS) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with short-term stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [3][5]. - An increase in earnings estimates typically leads to higher fair value calculations for stocks, prompting institutional investors to buy or sell, thus affecting stock prices [3]. Flowserve's Earnings Outlook - For the fiscal year ending December 2025, Flowserve is expected to earn $3.20 per share, which remains unchanged from the previous year, but the Zacks Consensus Estimate has increased by 2.6% over the past three months [7]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [6]. - The upgrade of Flowserve to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, indicating strong potential for near-term price appreciation [9].

Group 1 - FLSmidth & Co. A/S initiated a share buy-back programme on 25 June 2025, with a maximum amount of DKK 1.4 billion and up to 4,600,000 shares, representing approximately 8 percent of the company's share capital [1] - The share buy-back programme is executed in accordance with EU regulations on market abuse and safe harbour [1] - As of 8 July 2025, a total of 218,000 shares have been bought back under the programme, with a total transaction value of DKK 84,480,553.18 [2][3] Group 2 - Following the transactions, FLSmidth holds 785,002 treasury shares, which is 1.36 percent of the total share capital [3] - The average transaction prices for shares bought back during the specified period ranged from DKK 381.46 to DKK 390.75 [2] - The company aims to improve sustainability in the mining industry and has set a target for zero emissions by 2030 [4]

Group 1 - FLSmidth & Co. A/S initiated a share buy-back programme on 25 June 2025, with a maximum amount of DKK 1.4 billion and up to 4,600,000 shares, representing approximately 8 percent of the company's share capital [1] - The share buy-back programme is executed in compliance with EU regulations on market abuse and safe harbour [1] - As of 1 July 2025, FLSmidth has repurchased a total of 109,500 shares under the programme, with a total transaction value of DKK 42,687,499 [2][3] Group 2 - The average transaction prices for shares repurchased ranged from DKK 382.54 to DKK 394.10 during the buy-back period [2] - Following the transactions, FLSmidth holds 676,502 shares as treasury shares, which is 1.17 percent of the total share capital [3]

Core Viewpoint - FLSmidth has agreed to divest its Air Pollution Control (APC) business to Rubicon Partners, concluding a series of divestments that began in 2020 [1][2]. Group 1: Transaction Details - The divestment includes all related assets such as intellectual property, technology, employees, and order backlog [1]. - The transaction is expected to close in the second half of 2025 [1]. - FLSmidth anticipates a small net gain from the divestment, which will be recognized under discontinued operations [2]. Group 2: Financial Guidance - The transaction does not alter FLSmidth's previously communicated financial guidance for the full year 2025 [2]. Group 3: Company Background - FLSmidth is a technology and service supplier to the global mining industry, focusing on improving performance, lowering operating costs, and reducing environmental impact [3]. - The company aims for zero emissions in mining by 2030 as part of its sustainability ambition, MissionZero [3]. Group 4: Rubicon Partners Overview - Rubicon Partners is a UK-based investment partnership that specializes in acquiring complex industrial businesses [4]. - Over 32 years, Rubicon has invested in 83 businesses, with values ranging from £15 million to £250 million [4]. - The firm focuses on long-term value creation by collaborating closely with company management [4].

Company Overview - Flowserve (FLS) shares increased by 6.8% to close at $51.88, supported by strong trading volume, contrasting with a 3.8% decline over the past four weeks [1] - The company specializes in manufacturing pumps, valves, and other components for the oil and gas industries [3] Business Performance - The recent rally in Flowserve's stock is attributed to positive momentum in its aftermarket business, driven by robust demand across North America, Europe, the Middle East, and Latin America [2] - An increase in bookings in general industries, energy, and power end markets is bolstering the company's performance [2] Earnings Expectations - Flowserve is projected to report quarterly earnings of $0.77 per share, reflecting a year-over-year increase of 5.5% [3] - Expected revenues for the upcoming quarter are $1.21 billion, which represents a 4.7% increase compared to the same quarter last year [3] Market Sentiment - The consensus EPS estimate for Flowserve has remained stable over the last 30 days, indicating that stock price movements may not sustain without changes in earnings estimate revisions [5] - Flowserve currently holds a Zacks Rank of 3 (Hold), while IHI CORP, a competitor in the same industry, has a Zacks Rank of 1 (Strong Buy) [5][6]

Company Announcement - FLSmidth & Co. A/S disclosed transactions made by its board members and executives in accordance with market abuse regulations [1][2] - The company has been granted power of attorney by its board members and executives to publish their trading activities [2] Executive Transactions - Mikko Keto, the CEO, sold 20,000 shares for a total of DKK 7,864,651.60 and now holds 23,484 shares [3] - The transaction was motivated by the need to fulfill tax obligations related to vested shares from long-term incentive plans [3] Company Overview - FLSmidth is a technology and service supplier to the global mining industry, focusing on improving performance, reducing costs, and minimizing environmental impact [4] - The company has set a sustainability goal, MissionZero, aiming for zero emissions in mining by 2030 and plans to become carbon neutral in its operations by 2030 [4]

Core Viewpoint - FLSmidth & Co. A/S has launched a share buy-back programme of up to DKK 1.4 billion, aimed at adjusting its capital structure and fulfilling obligations from share-based incentive programmes, with plans to propose cancellation of any repurchased shares not used for these obligations at a future General Meeting [1]. Group 1: Share Buy-Back Programme Details - The share buy-back programme is authorized by the Board of Directors, allowing the company to acquire its own shares up to 10 percent of its share capital before the next Annual General Meeting scheduled for 24 March 2026 [2]. - The programme will run from 25 June 2025 to no later than 20 March 2026, with a maximum repurchase amount of DKK 1.4 billion and up to 4,600,000 shares, representing approximately 8 percent of the company's share capital [4]. - Shares repurchased on any trading day cannot exceed 25 percent of the average daily trading volume over the preceding 20 trading days [5]. Group 2: Compliance and Management - The share buy-back programme will comply with EU regulations on market abuse and is managed independently by BNP Paribas, which will make all trading decisions without FLSmidth's involvement [3]. - Shares will be purchased at prices not exceeding the higher of the last independent transaction price or the highest independent bid, with a maximum deviation of 10 percent from the official price on Nasdaq Copenhagen at the time of acquisition [6]. - FLSmidth reserves the right to suspend the buy-back programme at any time, with announcements to be made regarding transactions at least every 7 trading days [7].

Summary of Chart Industries (GTLS) Conference Call Company Overview - **Company**: Chart Industries (GTLS) - **Merger**: Recently announced merger with Flowserve, creating a differentiated industrial process technology company that combines thermal management and flow management [3][4] Key Points from the Conference Call Merger Details - The merger aims to create a scaled company that positions itself against multi-industry peers like Ingersoll Rand and Dover [4] - The combination is expected to enhance revenue growth opportunities, margin levers, earnings durability, and balance sheet flexibility [5][26] Revenue Growth Opportunities - The merger is projected to increase revenue growth opportunities beyond what Chart and Flowserve could achieve independently [10] - Chart's standalone commercial pipeline is valued at approximately $24 billion, which is expected to amplify with the merger [12] - Specific applications such as LNG, hydrogen, and carbon capture are anticipated to see a 10% increase in content due to the merger [12] - The combined company will have access to 200 service centers globally, increasing aftermarket service coverage from 40% to a target of 80% [18] Margin Expansion - The merger is expected to yield $300 million in cost synergies, equating to about 3% of revenue [8] - Cost synergies will come from procurement, back office savings, and roofline consolidation [23] - The combination is expected to enhance margin durability due to a higher proportion of aftermarket services, which are generally higher margin [21][38] Earnings Durability and Resilience - The combined company is expected to generate less cyclical results and have more predictable revenue, with over 40% of revenues coming from aftermarket services [26] - The merger is anticipated to reduce dependence on large projects, enhancing earnings predictability [26] Balance Sheet Flexibility - The transaction is structured to target an investment-grade rating, with a projected net leverage ratio of approximately 2 at close [27] - Improved EBITDA to cash conversion is expected, enhancing cash culture and resilience [27] Market and Geographic Expansion - The merger will allow Chart to leverage Flowserve's relationships in nuclear, chemicals, and refining markets, particularly in Asia Pacific [14][32] - The combined company aims to address high-growth end markets, including LNG and data centers, with enhanced product offerings [34][52] Aftermarket Services - The aftermarket segment is projected to constitute 42% of the pro forma business, which is expected to drive higher margins and recurring revenue [38] - Long-term service agreements are anticipated to increase due to the expanded footprint and capabilities from the merger [40] Operational Updates - Chart expects the second quarter of 2025 to have a book-to-bill ratio above one, indicating strong order trends [47][48] - The company is tracking well against its operational financial targets for the second quarter and the remainder of the year [53] Additional Insights - The merger is seen as a strategic move to create a differentiated industrial process technology company, with expectations to outperform peers in high-growth markets [30] - The integration process is underway, with a focus on regulatory filings and shareholder votes before the merger closes [27][29] This summary encapsulates the key points discussed during the conference call, highlighting the strategic implications of the merger and the anticipated benefits for Chart Industries and its stakeholders.

Core Insights - Flowserve Corporation (FLS) is experiencing strong growth in its Pump Division and Flow Control Division, driven by robust aftermarket demand across North America, Europe, the Middle East, and Latin America, with revenues in the Pump Division increasing by 1.8% year over year in Q1 2025 [1] - The Flow Control Division saw a significant increase in bookings, up 21.2% year over year in Q1, with revenues rising by 13.6% in the same period, supported by growth in general industries and energy markets [2] - Flowserve's balanced capital allocation strategy includes acquisitions, dividends, and share repurchases, with the recent acquisition of MOGAS Industries contributing positively to sales growth by 3.3% in Q1 2025 [3] Financial Performance - In Q1 2025, Flowserve allocated $27.6 million for dividends and $21.1 million for share buybacks, while in 2024, it paid out $110.4 million in dividends and repurchased shares worth $20.1 million [4] - The company increased its quarterly dividend by approximately 5% to 21 cents per share in Q1 2025 [4] - Despite revenue growth, Flowserve faced rising operating costs, with the cost of sales increasing by 3.6% year over year to $775.2 million, representing 67.7% of net sales [5] Debt and Market Position - Flowserve ended Q1 2025 with a long-term debt of $1.45 billion, with an interest expense of $19.2 million in the same quarter, indicating high leverage concerns [10] - The company's stock performance has been under pressure, with shares losing 3% over the past year compared to a 4% growth in the industry [8]