Inside Wall Street
`QUINTESSENTIAL CLINTON STOCK'
Despite all the hullabaloo about Clinton's promise to spend massively on infrastructure, shares of Fluor, one of the nation's major engineering and construction companies, have made little headway. The stock is stuck at 43, where it was last May. Some analysts have cut their 1993 estimates and downgraded the stock to a hold from a buy.
But that's just dandy for investment adviser Steve Leeb, editor of The Big Picture market newsletter, who has been buying shares. "Fluor is one of the quintessential Clinton stocks if there ever is one. It will be the biggest beneficiary of Clinton's infrastructure spending program," says Leeb. He sees Fluor as "a $55 stock in the next six months and a $75 stock in two to three years." Leeb expects Fluor to win a lot of the contracts for rebuilding roads, highways, and bridges.
Already, Fluor's work backlog has rapidly risen, to some $13 billion in signed contracts so far. He expects the backlog to grow 15% to 20% annually over the next five years. Fluor is a major player not only in construction but also in environmental cleanup. The Energy Dept. recently awarded Fluor a contract to manage the cleanup of that agency's uranium production facilities in Fernald, Ohio. This $2.2 billion project is part of a huge nationwide program to clean up such sites under the jurisdiction of the Energy and Defense Depts.
Leeb sees earnings rising to $2.30 a share in 1993 and $2.80 in 1994, vs. 1992's estimated $1.70.GENE G. MARCIAL