Flowserve and Bassett Furniture have been featured as Zacks Bull and Bear of the Day

Press Release Overview

Chicago, IL – March 4, 2026 – Zacks Equity Research has spotlighted Flowserve Corp. (FLS) as the Bull of the Day and Bassett Furniture Industries (BSET) as the Bear of the Day. The report also includes insights on EQT Corp. (EQT), Kinder Morgan Inc. (KMI), and Antero Resources (AR).

Summary of Featured Stocks

Bull of the Day: Flowserve Corp.

Flowserve Corp. is optimistic about the expanding opportunities in power generation for 2026. As a Zacks Rank #1 (Strong Buy), the company is projected to achieve double-digit earnings growth next year.

Flowserve is a global leader in fluid motion and control solutions, manufacturing engineered and industrial pumps, seals, valves, and providing a variety of flow management services in over 50 countries.

Fourth Quarter 2025 Performance

On February 5, 2026, Flowserve reported its Q4 2025 and full-year results, surpassing consensus estimates by $0.17 with earnings of $1.11 per share (compared to the expected $0.94). This marked the fourth consecutive quarter of exceeding earnings expectations.

Bookings for the quarter reached $1.2 billion, a 2.9% increase, with aftermarket bookings up 10.4% to $682 million.

CEO Scott Rowe expressed confidence in the company’s 2026 outlook, citing robust market conditions, a focus on power generation, and ongoing improvements through the Flowserve Business System.

Strategic acquisitions have positioned Flowserve to capitalize on the growing demand for power generation, particularly in the AI infrastructure sector.

2026 Guidance and Outlook

Flowserve raised its guidance for 2026 above consensus estimates. Since the earnings release, five analyst estimates for 2026 have been revised upward, pushing the Zacks Consensus from $3.93 to $4.11 per share—a 12.4% increase over last year’s $3.64. The outlook for 2027 is also positive, with the consensus rising to $4.67, reflecting a 14.2% projected earnings growth.

Stock Performance and Valuation

Shares of Flowserve recently reached a five-year high, though they experienced an 8% pullback amid market volatility. Year-to-date, the stock remains up by double digits. Flowserve trades at a forward P/E of 21, which is attractive compared to other AI infrastructure stocks trading at higher multiples.

The company continues to reward shareholders, announcing a 5% increase in its quarterly dividend to $0.22 (about a 1% yield) on February 13, 2026.

For investors seeking exposure to AI infrastructure with strong earnings growth and reasonable valuation, Flowserve stands out as a compelling choice.

Bear of the Day: Bassett Furniture Industries, Inc.

Bassett Furniture Industries is undergoing restructuring as it waits for a rebound in furniture demand. Over the past month, analysts have lowered their estimates for this Zacks Rank #5 (Strong Sell) stock.

Bassett operates 86 stores across the U.S., offering home furnishings, custom furniture, in-home design consultations, and accessories. About 60% of sales come from these stores, with the remainder from a sizable wholesale business serving over 1,000 accounts, including the Lane Venture outdoor brand and a growing number of interior design firms. The company also sells directly to consumers online.

With a 120-year history, Bassett manufactures 75% of its products in the U.S.

Fiscal Q4 2025 Results

On February 4, 2026, Bassett reported Q4 2025 earnings of $0.23 per share, missing the consensus estimate of $0.30. This was the first earnings miss in five quarters. Despite a challenging retail environment, revenue increased 5.1% year-over-year to $88.7 million, with retail sales up 7.9% to $57.3 million.

The company’s restructuring efforts have reduced SG&A expenses to 53.2% of sales, down 60 basis points from the prior year, reflecting cost controls and improved leverage from higher sales.

CEO Rob Spilman highlighted a strategic plan for 2026 aimed at growth and market share gains, even as housing activity and discretionary spending remain subdued. Notably, Bassett Casegoods (the wood business) saw sales rise over 50% due to innovation initiatives, and the upholstery segment remained strong.

Bassett also launched a Hospitality Division, targeting commercial clients such as country clubs, senior living facilities, and boutique hotels, with a focus on quick custom solutions from U.S. manufacturing.

Analyst Revisions and Stock Performance

Analysts have tempered their expectations for a 2026 earnings turnaround, with two estimates cut in the past month, lowering the consensus to $1.00 from $1.09. This still represents 33% growth over 2025’s $0.75. For 2027, the consensus dropped to $1.34 from $1.39, but still implies 34% growth.

Bassett’s shares have underperformed the S&P 500 over the past five years and are down 10.4% in 2026. However, the stock is now considered inexpensive, trading at a forward P/E of 14.9—a level typically seen as a value stock. With expected earnings growth above 30% for the next two years, the PEG ratio is just 0.9, indicating both value and growth potential. The company also pays an annual dividend of $0.80, yielding 5.4%.

As Bassett awaits a housing market recovery and increased consumer demand, investors may prefer to watch for signs of improvement before taking action.

Additional Insights: Natural Gas Stocks and Clean Energy Demand

Three Natural Gas Stocks Poised to Benefit from Rising Clean Energy Needs

The global shift toward cleaner energy sources is driving up demand for natural gas, especially as data centers require significant electricity. U.S. LNG exports are also climbing, reflecting strong international demand. This environment is favorable for companies involved in natural gas exploration, production, transportation, and storage.

According to the U.S. Energy Information Administration, natural gas spot prices are projected to average $4.31 per million BTU in 2026, up from $3.53 last year. Higher prices are expected to boost profits for exploration and production firms.

Top Picks: EQT, Kinder Morgan, Antero Resources

• EQT Corp. – A leading U.S. natural gas producer with a strong presence in the Appalachian basin. With a Zacks Rank #3 (Hold), EQT is positioned to deliver solid cash flows amid a supportive pricing environment.
• Kinder Morgan Inc. – With an extensive pipeline network of about 78,000 miles, Kinder Morgan transports a large share of domestic natural gas. Also ranked #3 by Zacks, the company is set to benefit from the growing clean energy trend.
• Antero Resources – This upstream energy firm operates in the Appalachian Basin and, with decades of drilling inventory, is well-positioned to capitalize on rising natural gas prices. Zacks ranks AR at #3.

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Free Stock Analysis Reports

• Flowserve Corporation (FLS): Free Stock Analysis Report
• EQT Corporation (EQT): Free Stock Analysis Report
• Kinder Morgan, Inc. (KMI): Free Stock Analysis Report
• Antero Resources Corporation (AR): Free Stock Analysis Report
• Bassett Furniture Industries, Incorporated (BSET): Free Stock Analysis Report

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