Shares of Dover Corporation (DOV) reached a new 52-week high of $96.57 on Dec 30. The new high is based on expected benefits from growth in bookings and orders, and focus on the oil and gas, plastics and petrochemicals markets.
Illinois-based Dover is a diversified machinery producer with a market cap of roughly $16.4 billion. The company’s shares closed at $96.38 at the end of trading on Dec 30, with a solid year-to-date return of about 49.3% and a robust one-year return of roughly 50.6%, outperforming the S&P 500.
The company’s long-term estimated earnings per share growth rate is 12.5%. Average volume of shares traded over the last three months is approximately 870K.
What’s Driving Dover Up?
Dover reported third-quarter 2013 adjusted earnings of $1.54 per share, beating the Zacks Consensus Estimate of $1.50 and exceeding the prior-year quarter’s earnings of $1.25 by 23%. The improvement was due to organic growth across all segments, strength in the drilling and downstream markets and cost reduction activities.
In Nov 2013, Dover closed its previously announced acquisition of Italy-based Finder for $145 million. The acquisition will help Dover strengthen the position of the Pump Solutions Group in the energy market and enhance its global footprint.
Furthermore, Dover signed a definitive agreement to sell its DEK Printing Machines unit (:DEK) to Hong Kong-listed ASM Pacific Technology. The sale, which is expected to close by mid-2014, is likely to generate cash proceeds of $170 million. The deal will boost Dover’s business profile and strengthen its key industrial growth spaces.
Dover's total bookings also increased 9% year over year to $2.2 billion. Dover is expected to continue to benefit from bookings and orders growth in the upcoming quarters.
Dover currently has a Zacks Rank #3 (Hold).
Other Stocks to Consider
Better-ranked stocks in the same industry are Barnes Group Inc. (B), DXP Enterprises, Inc. (DXPE) and Graco Inc. (GGG). While Barnes Group holds a Zacks Rank #1 (Strong Buy), DXP Enterprises and Graco carry a Zacks Rank #2 (Buy).
Read the Full Research Report on GGG
Read the Full Research Report on B
Read the Full Research Report on DXPE
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