10 Most Undervalued Industrial Stocks to Buy According to Analysts

4. Flowserve Corp. (NYSE:FLS)

Forward PE: 14.2

Potential Upside: 27%

Number of Hedge Fund Holders: 55

Flowserve Corp. (NYSE:FLS) is one of the 10 most undervalued industrial stocks to buy according to analysts. On June 10, Bank of America analyst Andrew Obin reiterated a Buy rating on Flowserve with an unchanged price target of $60. His view is primarily supported by the strategic merger with Chart Industries, which Obin sees as a transformative move.

The combined company is expected to benefit from increased scale, stronger positioning in LNG, renewable energy, and nuclear markets, as well as greater revenue diversification. He also pointed out that the combined business should reduce reliance on any single revenue stream.

The deal is projected to be significantly accretive to earnings by FY29, supported by both cost and revenue synergies. Management has outlined projected cost savings of $300 million and anticipates a modest 2% boost in revenue post-integration, with benefits expected by fiscal year 2029. These gains are expected to come from areas such as procurement efficiencies, reduced corporate overhead, and operational improvements.

According to Obin, while integration challenges exist, the strategic reasoning and potential benefits from synergies offer solid grounds for staying optimistic about the stock.

Flowserve Corp. (NYSE:FLS) manufactures and provides aftermarket services for flow control systems. It develops and manufactures precision-engineered flow control equipment integral to the movement, control, and protection of the flow of materials in customers’ critical processes.