Let’s dig into the relative performance of Flowserve (NYSE: FLS) and its peers as we unravel the now-completed Q3 gas and liquid handling earnings season.

Gas and liquid handling companies possess the technical know-how and specialized equipment to handle valuable (and sometimes dangerous) substances. Lately, water conservation and carbon capture–which requires hydrogen and other gasses as well as specialized infrastructure–have been trending up, creating new demand for products such as filters, pumps, and valves. On the other hand, gas and liquid handling companies are at the whim of economic cycles. Consumer spending and interest rates, for example, can greatly impact the industrial production that drives demand for these companies’ offerings.

The 13 gas and liquid handling stocks we track reported a slower Q3. As a group, revenues missed analysts’ consensus estimates by 2.2%.

Luckily, gas and liquid handling stocks have performed well with share prices up 13.1% on average since the latest earnings results.

Flowserve (NYSE: FLS)

Manufacturing the largest pump ever built for nuclear power generation, Flowserve (NYSE: FLS) manufactures and sells flow control equipment for various industries.

Flowserve reported revenues of $1.13 billion, up 3.5% year on year. This print exceeded analysts’ expectations by 0.9%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ EPS and adjusted operating income estimates.

“Our third quarter results reflect strong operational performance, including meaningful year-over-year improvements in margins, EPS and cash flow. The Flowserve Business System is beginning to deliver results as we advance our operational excellence and portfolio excellence initiatives. We generated $1.2 billion in bookings during the quarter, which included a healthy mix of project awards, strong aftermarket activity and record bookings from our 3D strategic initiatives,” said Scott Rowe, Flowserve’s President and Chief Executive Officer.

Flowserve achieved the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 13.5% since reporting and currently trades at $60.09.

Is now the time to buy Flowserve? Access our full analysis of the earnings results here, it’s free.

Best Q3: IDEX (NYSE: IEX)

Founded in 1988, IDEX (NYSE: IEX) is a global manufacturer specializing in highly engineered products such as pumps, flow meters, and fluidics systems for various industries.

IDEX reported revenues of $798.2 million, flat year on year, outperforming analysts’ expectations by 0.6%. The business had a satisfactory quarter with a solid beat of analysts’ adjusted operating income estimates but a slight miss of analysts’ organic revenue estimates.

The market seems happy with the results as the stock is up 12.7% since reporting. It currently trades at $229.70.

Is now the time to buy IDEX? Access our full analysis of the earnings results here, it’s free.

Weakest Q3: CECO (NASDAQ: CECO)

Started in a Cincinnati garage, CECO (NASDAQ: CECO) is a global provider of industrial air quality and fluid handling systems.

CECO reported revenues of $135.5 million, down 9.3% year on year, falling short of analysts’ expectations by 13.1%. It was a disappointing quarter as it posted a miss of analysts’ revenue estimates.

CECO delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 26.8% since the results and currently trades at $33.31.

Read our full analysis of CECO’s results here.

Chart (NYSE: GTLS)

Installing the first bulk Co2 tank for McDonalds’s sodas, Chart (NYSE: GTLS) provides equipment to store and transport gasses.

Chart reported revenues of $1.06 billion, up 18.3% year on year. This number lagged analysts' expectations by 3.1%. Overall, it was a slower quarter as it also logged full-year revenue guidance missing analysts’ expectations.

Chart achieved the fastest revenue growth but had the weakest full-year guidance update among its peers. The stock is up 58.8% since reporting and currently trades at $191.79.

Read our full, actionable report on Chart here, it’s free.

Helios (NYSE: HLIO)

Founded on the principle of treating others as one wants to be treated, Helios (NYSE: HLIO) designs, manufactures, and sells motion and electronic control components for various sectors.

Helios reported revenues of $194.5 million, down 3.4% year on year. This number missed analysts’ expectations by 1%. It was a slower quarter as it also recorded full-year EBITDA guidance missing analysts’ expectations.

The stock is up 7.5% since reporting and currently trades at $52.66.

Read our full, actionable report on Helios here, it’s free.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September, a quarter in November) have kept 2024 stock markets frothy, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there's still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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