Fluor's Valuation: Assessing the Impact of Growing Backlog and Lower Risk Contracts

Fluor (FLR) has seen a 12.6% decline in its share price over the past month and a 22% decline over the past year. However, its 5-year total shareholder return of 128.8% suggests a strong long-term story. The company's infrastructure backlog and lower risk, reimbursable contracts are reshaping the investment case. With a rich backlog and buybacks waiting on NuScale proceeds, Fluor is seen as undervalued with a narrative fair value of $51 and a consensus price target of $49.89.