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

Wednesday, Mar 4, 2026 9:55 am ET7min read
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Aime RobotAime Summary

- Zacks highlights FlowserveFLS-- (FLS) as Bull of the Day, citing 12.4% 2026 earnings growth and AI infrastructureAIIA-- tailwinds after four consecutive beats.

- Bassett FurnitureBSET-- (BSET) is Bear of the Day after missing Q4 estimates, with analysts cutting 2026/2027 forecasts amid weak housing market demand.

- Natural gas865032-- stocks EQTEQT--, KMIKMI--, and AR gain from rising clean energy demand, with EIA projecting $4.31/MMBTU prices in 2026.

For Immediate Release

Chicago, IL – March 4, 2026 – Zacks Equity Research shares Flowserve Corp.FLS-- FLS as the Bull of the Day and Bassett Furniture IndustriesBSET--, Inc. BSET as the Bear of the Day. In addition, Zacks Equity Research provides analysis on EQT Corp. EQT, Kinder Morgan Inc. KMI and Antero Resources AR.

Here is a synopsis of all five stocks.

Bull of the Day:

Flowserve Corp. is bullish about the power generation opportunities coming in 2026. This Zacks Rank #1 (Strong Buy) is expected to grow earnings by the double digits in 2026.

Flowserve is a leading provider of fluid motion and control products and services.

The company produces engineered and industrial pumps, seals and valves as well as a range of related flow management services. It operates in more than 50 countries.

Flowserve Beats in the Fourth Quarter of 2025

On Feb 5, 2026, FlowserveFLS-- reported its fourth quarter 2025 and full year results. It beat on the fourth quarter consensus by $0.17, reporting $1.11 versus the Zacks Consensus of $0.94.

It was the fourth earnings beat in a row.

Flowserve had fourth quarter bookings of $1.2 billion, up 2.9%, including 10.4% aftermarket growth to $682 million.

“With healthy end markets, a focus on expanding power generation opportunities, and the continued progress of the Flowserve Business System, we are confident in our 2026 guidance and updated long-term financial targets,” said CEO Scott Rowe.

Flowserve has been making strategic acquisitions to expand in the power generation category which is in the hot AI infrastructure area.

Flowserve Guides Higher for 2026

Flowserve was bullish about 2026, as it guided higher than the Zacks Consensus.

As a result, 5 estimates have been revised higher for 2026 since the earnings report, with one even being revised higher in the last week. That has pushed the Zacks Consensus up to $4.11 from $3.93.

That’s earnings growth of 12.4% as the company only made $3.64 last year.

2027 is also looking bullish. One estimate has been revised in the last week, with 3 higher in the last month. The Zacks Consensus has jumped to $4.67 from $4.26.

That’s another 14.2% earnings growth.

Here’s what it looks like on the 5-year price, consensus and surprise chart.

Shares of Flowserve Trade Near 5-Year High

The AI infrastructure stocks, which include companies that are involved in the construction, cooling and power generation of data centers, have been hot.

Flowserve was trading at a new 5-year high but has pulled back in the last week of market volatility, falling 8%. It’s still up double digits year-to-date.

Flowserve is attractively priced. It’s trading with a forward price-to-earnings (P/E) ratio of 21. Given that other AI infrastructure stocks are trading in their 30s, it is a value.

The company is shareholder friendly. On Feb 13, 2026, Flowserve announced its Board had voted to raise the quarterly dividend by 5% to $0.22. It is yielding about 1%.

For those looking for an AI infrastructure stock that is attractively valued and has double digit earnings growth, Flowserve should be on your short list.

Bear of the Day:

Bassett Furniture Industries, Inc. is in a restructuring mindset as it waits for furniture demand to pick up. Analysts have been cutting estimates on this Zacks Rank #5 (Strong Sell) over the last 30 days.

Bassett Furniture Industries operates 86 company and licensee-owned stores in the United States that sell home furnishings, including custom furniture design, free in-home design visits, and coordinated decorating accessories. It sells about 60% of its products through the stores but it also has a large traditional wholesale business with more than 1,000 open market accounts.

The wholesale business, including the Lane Venture outdoor brand, also services general furniture stores and a growing number of interior design firms.

Additionally, BassettBSET-- sells directly to consumers on its website.

Bassett has been in the business of designing and building furniture for 120 years. 75% of what Bassett sells is built, finished and upholstered in the USA.

Bassett Missed on the Fiscal Fourth Quarter 2025 Results

On Feb 4, 2026, Bassett reported its fiscal fourth quarter 2025 results and missed on the Zacks Consensus by $0.07. Earnings were $0.23 compared to the Consensus of $0.30.

It was the first earnings miss in five quarters.

However, even though the company has talked about a challenging retail environment, revenue rose 5.1% year-over-year to $88.7 million. Retail sales were up 7.9% to $57.3 million.

The company has benefited from its restructuring strategy. Selling, general and administrative expenses (SG&A) were 53.2% of sales, 60 basis points lower than the prior year. This reflected benefits from the prior year’s restructuring plan and on-going cost containment activities coupled with greater leverage of fixed costs from higher sales levels.

“Our well-defined strategic plan for 2026 is designed to grow and take market share in an environment where housing activity is projected to remain slow and discretionary demand has moderated,” said Rob Spilman, CEO.

In a bright spot in the quarter, Bassett Casegoods, which is the wood business, saw sales up over 50% after it made a commitment to drive innovation.

It’s upholstery business also continued to be solid.

The company also recently formed the Bassett Hospitality Division and hired a leader with extensive experience selling to country clubs, senior living facilities, boutique hotels and related commercial areas.

It hopes to offer quick custom solutions from its domestic manufacturing facilities. This business will be a contributor to its wholesale business.

Analysts Cut Bassett’s Fiscal 2026 and 2027 Earnings Estimates

The analysts might have gotten too bullish about a turnaround in earnings in 2026, even though one is still expected.

Two estimates have been cut for 2026 in the last 30 days pushing the Zacks Consensus down to $1.00 from $1.09. This is still earnings growth of 33% because the company only earned $0.75 in fiscal 2025.

One estimate was also cut for 2027 in the last month, pushing down the 2027 Zacks Consensus to $1.34 from $1.39. But that is further earnings growth of 34%.

Will earnings rebound this much over the next 2 years?

Here’s what it looks like on the 5-year price, consensus and surprise chart.

Bassett Shares Lag the S&P 500 the Last 5 Years

Housing has been in a recession for three years. That has impacted the furniture industry as well.

Bassett shares have lagged the S&P 500 over the last 5 years. In 2026, they’re down another 10.4%.

However, Bassett is now a cheap stock. It trades with a forward price-to-earnings (P/E) ratio of just 14.9. A P/E under 15 is usually considered a value stock.

But with earnings expected to grow over 30% this year and next, it also has a PEG ratio, which looks at P/E divided by growth, of just 0.9. A PEG ratio under 1.0 usually means a company has both value and growth.

Bassett is also shareholder friendly. It is paying an annual dividend of $0.80, which is yielding a juicy 5.4%.

Like last year, Bassett is simply waiting for the housing market to turn around, and for the consumer to buy more furniture. Investors might want to wait on the sidelines to see if it can happen this year.

Additional content:

3 Natural Gas Stocks to Gain on Mounting Clean Energy Demand

To combat climate change, the world is gradually demanding cleaner fuel, which in turn is boosting demand for natural gas. The increasing number of data centers across the globe requires massive amounts of natural gas-driven electricity. Also, mounting U.S. LNG exports reflect rising demand for the commodity from different corners of the world. Thus, it seems that the business scenario of companies involved in the exploration and production of natural gas and in transporting and storing the commodity is highly favorable.

In its latest short-term energy outlook, the U.S. Energy Information Administration revealed that it expects the natural gas spot price at $4.31 per million BTU for 2026, higher than $3.53 per million BTU last year. Higher prices are likely to aid the exploration and production companies’ bottom line.

3 Stocks to Gain: EQT, KMI, AR

EQT Corp. is a leading producer of natural gas in the United States, having a strong presence in the Appalachian basin, one of the most prolific basins in the domestic market. With the pricing environment of natural gas likely to remain healthy, EQT, carrying a Zacks Rank #3 (Hold), is expected to continue to generate handsome cash flows for shareholders.

Kinder Morgan Inc. is also well-positioned to gain since it has a massive network of pipelines spanning roughly 78,000 miles. The midstream assets are responsible for transporting a significant proportion of the natural gas produced in the domestic market. Hence, Kinder Morgan, with a Zacks Rank of 3, will also capitalize on growing clean energy demand. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Antero Resources is a leading upstream energy company involved in producing natural gas in the Appalachian Basin. Notably, Zacks #3 Ranked AR has decades of drilling inventories, reflecting a brightened production outlook and is likely to gain from rising natural gas prices.

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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

This article originally published on Zacks Investment Research (zacks.com).

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