This Underloved Industrial Turnaround Could Be a $1 Million Upside Story for Patient Investors Who Buy the Dip Now

Investors are always seeking opportunities to capitalize on stocks that will benefit from macroeconomic tailwinds. Currently, favorable trends in energy and electricity, as well as artificial intelligence (AI) data centers and general infrastructure, should help boost businesses in these sectors.

One company that can benefit from all this investment is American engineering and construction firm Fluor Corp. (NYSE: FLR). With the stock nearly 30% off July highs, Fluor looks like an opportunistic investment right now. Investors who took profits on high-flying tech stocks might find that a stodgy industrial like Fluor is the next million-dollar opportunity.

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Poised to spring higher

Fluor's stock plummeted after the company reported disappointing second-quarter earnings in August. The company reduced its 2025 earnings guidance, citing project delays and associated cost overruns resulting from subcontractor design errors. It also noted what it believes is a temporary drop in customer capital spending plans.

Things looked better with Fluor's third-quarter update, however. The company revised its full-year earnings estimates higher. It also began booking large profits from its stake in the small modular nuclear reactor start-up NuScale Power.

Of that investment, Fluor CEO Jim Breuer stated, "Working with NuScale's management and board over the past several quarters, we recently announced a comprehensive agreement for the conversion and monetization of our remaining stake in NuScale. This allows Fluor to realize significant value from this investment and return it to our shareholders."

Fluor is ideally positioned

Fluor's backlog now exceeds $20 billion for projects in its Urban Solutions segment. It has recently garnered project awards in the metals and mining sector, including a copper mining project and an engineering design contract for the new rare earth magnet plant that MP Materials is building in Texas.

Future prospects look good, too. Several pharmaceutical companies are expanding their domestic manufacturing capacity, and Fluor anticipates securing a new client's project in the current quarter. Data center construction is also boosting Flour's backlog.

Buying stocks into fear

That all makes Fluor well positioned to rebound from what has been a disappointing 2025. The wave of new construction will be followed by the need for significant growth in power generation and delivery infrastructure. That means Flour's runway for growth should extend for several years.

Warren Buffett famously advised investors to "be fearful when others are greedy and greedy when others are fearful." It appears to be that moment in time for Fluor stock. Bad news drove the stock lower this year, and investors who anticipate the business rebound could now turn an investment into a highly profitable long-term move.

Howard Smith has no position in any of the stocks mentioned. The Motley Fool recommends MP Materials and NuScale Power. The Motley Fool has a disclosure policy.