Multiple Tailwinds Send Fluor Corp. (FLR) Shares Higher

Hotchkis & Wiley, an investment management company, released its “Hotchkis & Wiley Mid-Cap Value Fund” second quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter of 2025, equity market performance experienced significant volatility, primarily due to changes in U.S. trade policies and escalating geopolitical tensions. The fund lagged behind the Russell Midcap Value Index in the second quarter, gaining 3.63% vs 5.35% for the index. Please review the fund's top 5 holdings to gain insight into their key selections for 2025.

In its second-quarter 2025 investor letter, Hotchkis & Wiley Mid-Cap Fund highlighted stocks such as Fluor Corporation (NYSE:FLR). Fluor Corporation (NYSE:FLR) is an engineering, procurement, and construction (EPC) company. The one-month return of Fluor Corporation (NYSE:FLR) was 8.76%, and its shares gained 16.40% of their value over the last 52 weeks. On July 29, 2025, Fluor Corporation (NYSE:FLR) stock closed at $55.99 per share with a market capitalization of $9.22 billion.

Hotchkis & Wiley Mid-Cap Fund stated the following regarding Fluor Corporation (NYSE:FLR) in its second quarter 2025 investor letter:

"Fluor Corporation (NYSE:FLR) is one of the largest contractors in the US. Unlike many competitors that specialize in elements of project delivery, most of Fluor’s revenue comes from projects where it provides full Engineering, Procurement, and Construction (EPC) services. The company’s shares rose in the quarter on improving margins and increased stock buyback guidance. Fluor is a high-quality professional services company with a medium-risk business model that grows with no reinvested capital. Valuation is extremely attractive on normal earnings and even more attractive if its NuScale small-scale nuclear reactor business realizes its potential."

Fluor Corporation (NYSE:FLR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 51 hedge fund portfolios held Fluor Corporation (NYSE:FLR) at the end of the first quarter, which was 48 in the previous quarter. While we acknowledge the potential of Fluor Corporation (NYSE:FLR) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Fluor Corporation (NYSE:FLR) and shared the list of best undervalued stocks to invest in. Fluor Corporation (NYSE: FLR) was one of the largest individual detractors to the performance of the Hotchkis & Wiley Mid-Cap Fund in the previous quarter. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.