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Fluor (FLR) has been drawing fresh attention after recent share price moves, with the stock up over the past week, month, and past 3 months, putting its longer term performance back in focus for investors.

See our latest analysis for Fluor.

That latest move takes Fluor’s share price to $46.92 and adds to a 12.52% year to date share price return. The 1 year total shareholder return of a 4.90% decline contrasts with a 161.39% gain over 5 years, which may suggest longer term momentum alongside recent volatility in how the market is pricing its risks and prospects.

If this kind of price action has you looking beyond a single contractor, it could be a moment to check out 24 power grid technology and infrastructure stocks as another way to find infrastructure related opportunities.

With Fluor trading at $46.92, a value score of 3, and a share price sitting below the average analyst target of $50.50, investors may ask whether this reflects a genuine mispricing or whether expectations about future growth are already fully reflected in the current price.

Fluor’s most followed narrative points to a fair value of $51.00, a touch above the recent $46.92 close, which puts the current analyst thinking in the spotlight.

The company’s new strategy focusing on cash generation and earnings growth is likely to improve net margins and enhance earnings. Expansion into strategic markets, coupled with project completions and acquisitions, is expected to increase revenue and enhance shareholder value.

Read the complete narrative.

Curious how a view of mid single digit revenue growth, thinner profit margins, and a higher future earnings multiple still add up to that $51.00 fair value? The full narrative lays out the math behind that tension.

Result: Fair Value of $51.00 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, there are still pressure points, including project delays that affect the timing of revenue and margins, as well as cost or collection issues that weigh on cash flow.

Find out about the key risks to this Fluor narrative.

While the consensus narrative points to a fair value of $51.00, our DCF model paints a different picture, with an estimate of $38.79 and Fluor trading at $46.92. That suggests the shares are priced above future cash flow estimates. Which perspective do you think deserves more weight?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Fluor for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 52 high quality undervalued stocks. If you save a screener we even alert you when new companies match – so you never miss a potential opportunity.

If you see the story differently or want to stress test the assumptions yourself, you can pull the numbers, set your own views, and Do it your way in just a few minutes.

A great starting point for your Fluor research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

If Fluor has sharpened your focus, do not stop here. Put the same disciplined thinking to work across other opportunities before the market moves without you.

• Target quality at a discount by scanning our 52 high quality undervalued stocks, built to surface companies with strong fundamentals priced below what many investors might expect.

• Steady your portfolio with income focused opportunities by reviewing our 14 dividend fortresses, highlighting businesses offering 5%+ yields that aim to pair stability with cash returns.

• Strengthen your downside protection by checking our 82 resilient stocks with low risk scores, featuring companies flagged for resilient balance sheets and lower overall risk scores.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include FLR.

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