Fluor Corporation (NYSE: FLR) provides engineering, procurement, construction management and project management services worldwide. Projects involve the design and construction of manufacturing facilities, transportation infrastructure, refineries, healthcare buildings, power plants and telecommunications infrastructure. The company also provides administrative and support services to the U.S. government. The oil and gas sector accounts for about 50% of sales. Commercial clients include Exxon Mobil (NYSE: XOM), General Motors (NYSE: GM) and DuPont (NYSE: DD).

Investors were pleased last week, when the company reported Q1 EPS of $1.50 and revenues of $4.81 billion. Analysts had been looking for $1.27 and $4.64 billion. Officials said that consolidated backlog rose to $31.5 billion, up 33% from the year ago period. Management also guided FY08 EPS to $6.25-$6.55, versus consensus of $5.63.

The FLR share price popped on the news and has since been defining a bullish "pennant" consolidation pattern. Prices frequently exit pennants moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Brokers recommend the issue with five "strong buys", six "buys", three "holds" and one "sell". Analysts expect a 21% growth rate, through the next year. The FLR Price to Sales ratio (0.94), Sales Growth rate (31.99%), EPS Growth rate (59.75%), Return on Assets (10.46%), Return on Investment (20.87%) and Return on Equity (28.17%) compare favorably with industry, sector and S&P 500 averages. Institutions hold about 94% of the outstanding shares. The stock is one of those used to calculate the S&P 500 Index. Over the past 52 weeks, it has traded between $98.99 and $198.00. A stop-loss of $164.00 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.