Looking back on gas and liquid handling stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including ITT (NYSE: ITT) and its peers.

Gas and liquid handling companies possess the technical know-how and specialized equipment to handle valuable (and sometimes dangerous) substances. Lately, water conservation and carbon capture–which requires hydrogen and other gasses as well as specialized infrastructure–have been trending up, creating new demand for products such as filters, pumps, and valves. On the other hand, gas and liquid handling companies are at the whim of economic cycles. Consumer spending and interest rates, for example, can greatly impact the industrial production that drives demand for these companies’ offerings.

The 12 gas and liquid handling stocks we track reported a satisfactory Q3. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 0.6% below.

In light of this news, share prices of the companies have held steady as they are up 3.6% on average since the latest earnings results.

ITT (NYSE: ITT)

Playing a crucial role in the development of the first transatlantic television transmission in 1956, ITT (NYSE: ITT) provides motion and fluid handling equipment for various industries

ITT reported revenues of $999.1 million, up 12.9% year on year. This print exceeded analysts’ expectations by 2.6%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ revenue estimates.

The stock is down 2.1% since reporting and currently trades at $172.17.

We think ITT is a good business, but is it a buy today? Read our full report here, it’s free for active Edge members.

Best Q3: SPX Technologies (NYSE: SPXC)

With roots dating back to 1912 as the Piston Ring Company, SPX Technologies (NYSE: SPXC) supplies specialized infrastructure equipment for HVAC systems and detection and measurement applications across industrial, commercial, and utility markets.

SPX Technologies reported revenues of $592.8 million, up 22.6% year on year, outperforming analysts’ expectations by 2.2%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA estimates.

The market seems content with the results as the stock is up 4.4% since reporting. It currently trades at $207.38.

Is now the time to buy SPX Technologies? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Graco (NYSE: GGG)

Founded in 1926, Graco (NYSE: GGG) is an industrial company specializing in the development and manufacturing of fluid-handling systems and products.

Graco reported revenues of $543.4 million, up 4.7% year on year, falling short of analysts’ expectations by 3%. It was a softer quarter as it posted a significant miss of analysts’ revenue and EBITDA estimates.

Interestingly, the stock is up 1.9% since the results and currently trades at $83.17.

Read our full analysis of Graco’s results here.

Flowserve (NYSE: FLS)

Manufacturing the largest pump ever built for nuclear power generation, Flowserve (NYSE: FLS) manufactures and sells flow control equipment for various industries.

Flowserve reported revenues of $1.17 billion, up 3.6% year on year. This result missed analysts’ expectations by 2.7%. Taking a step back, it was still a very strong quarter as it produced an impressive beat of analysts’ backlog estimates and a solid beat of analysts’ EBITDA estimates.

The stock is up 31.4% since reporting and currently trades at $69.20.

Read our full, actionable report on Flowserve here, it’s free for active Edge members.

Helios (NYSE: HLIO)

Founded on the principle of treating others as one wants to be treated, Helios (NYSE: HLIO) designs, manufactures, and sells motion and electronic control components for various sectors.

Helios reported revenues of $220.3 million, up 13.3% year on year. This print beat analysts’ expectations by 3.7%. Overall, it was a very strong quarter as it also logged a solid beat of analysts’ organic revenue estimates and a solid beat of analysts’ adjusted operating income estimates.

Helios scored the biggest analyst estimates beat and highest full-year guidance raise among its peers. The stock is down 7.1% since reporting and currently trades at $54.81.

Read our full, actionable report on Helios here, it’s free for active Edge members.

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

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