When looking for a new stock to "pick" and discuss, my first screening involves reviewing the top % gainers.  From among these stocks, I try to identify the highest quality companies--which for me are the ones with evidence of persistence of revenue and earnings growth, stable outstanding shares, growing and positive free cash flow, acceptable balance sheets and reasonable valuations.  These are the kind of companies that I try to own and to follow here on this blog.

Fluor (FLR) made the list of top % gainers on the NYSE today.  As I write, the stock is trading at  $202.34, up $10.79 or 5.63% on the day.  I do not own any shares or options on Fluor.  But I would like to share with you why

FLUOR (FLR) IS RATED A BUY

Let's review some of the facts about Fluor (FLR) that led me to this assessment---first of all, what exactly does this company do?

According to the Yahoo "Profile" on FLR, the company

"...through its subsidiaries, provides engineering, procurement, construction management, and project management services worldwide. It operates in five segments: Oil & Gas, Industrial & Infrastructure, Government, Global Services, and Power."

And the latest quarter?

On May 12, 2008, Fluor (FLR) reported 1st quarter 2008 results.   Revenue for the quarter ended March 31, 2008, came in at $4.8 billion, up about 32% from the prior year $3.6 billion.  Net earnings for the quarter came in at $138 million, up 63% from last year's $85 million in the same quarter.  On a per share basis, this worked out to $1.50/share, up sharply from $.94/diluted share last year.

In light of new awards and excellent prospects in the near future, the company went ahead and raised guidance for 2008 with earnings now expected in the $6.25 to $6.55 range, up from the previous range of $5.10 to$5.55/share previously announced.

The company easily beat expectations with the $1.50 figure, as analysts polled by Thomson Financial had expected a profit of $1.27/share.  The company also beat expectations on the revenue with the $4.8 billion figure as analysts had been expecting revenue of $4.64 billion.