SPX Corporation (SPW), Flowserve Corporation (FLS), IDEX Corporation (IEX): Take a Look at This Rising Sector for Your Portfolio

In sum, Flowserve Corporation (NYSE:FLS) is likely to be a beneficiary of upturns in its key end markets. The company’s EPS outlook is very favorable approaching late 2013 and 2014.

Thus, this may be a good opportunity to add Flowserve Corporation (NYSE:FLS) to a long-term focused portfolio.

Lastly, a growth company
The third example of a thriving flow technologies company is IDEX Corporation (NYSE:IEX). This one is situated in a unique set of end markets, namely fluid & metering, health & science, and fire & safety/diversified.

Of these three segments, the first two are performing rather well in terms of sales and margins, allowing the company to post better results as a whole. Second-quarter EPS improved to $0.76, from $0.67 the prior year.

Catalysts playing a role in IDEX Corporation (NYSE:IEX)’s earnings include:

1. Its fluid & metering segment is benefiting from a rebound in the liquefied petroleum gas market and rising global truck manufacturing.
2. Also within the fluid division, there are food-processing market opportunities in overseas markets.
3. The health & science unit is seeing gains from sales of scientific products, strength in orders, and acquisitions.

One aspect that makes this a growth company is its spending on acquisitions that are designed to build upon existing businesses, as well as boost its foothold in higher-growth end markets and geographies. This, along with product development, ought to allow it to thrive while market conditions are conducive to growth.

Accordingly, growth-focused investors may want to consider IDEX Corporation (NYSE:IEX) for their portfolios. The shares, recently at an all-time high, have positive momentum.

Summary
The best stock among these three, as stated, appears to be SPX Corporation (NYSE:SPW). That company is involved in numerous expanding end markets and is initiating a sound long-term expansion strategy.

The article Take a Look at This Rising Sector for Your Portfolio originally appeared on Fool.com and is written by Damon Churchwell.

Damon Churchwell has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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