Here's Why it is Worth Investing in Nordson (NDSN) Stock Now
Nordson Corporation NDSN currently boasts solid prospects, supported by strength across its businesses, strong product portfolio, acquisitions and a sound capital deployment strategy.
The Zacks Rank #2 (Buy) company has a market capitalization of $12.5 billion. In the past year, it has gained 6.7% against the industry’s decline of 13.2%.
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Let’s delve into the factors that make investing in the company a wise choice at the moment.
Business Strength: Nordson has been benefiting from the strong demand for all product lines in the industrial, electronics and medical end markets. In the quarters ahead, the company’s well-diversified business structure, focus on product innovations and large customer base across various industries are likely to drive its performance. The implementation of its Nordson Business System’s (“NBS Next”) growth framework has also been proving beneficial. For fiscal 2022 (ending October 2022), it expects revenue growth of 7-10% on a year-over-year basis.
Acquisition Benefits: The company’s buyout of NDC Technologies (November 2021) has been helping it expand its test and inspection platform. Also, it acquired vivaMOS in September 2020 and Fluortek, Inc. in June 2020. While vivaMOS added more vigor to the company’s test and inspection capabilities, Fluortek enhanced its medical product lines.
Rewards to Shareholders: Nordson remains focused on rewarding shareholders through share-repurchase programs and dividend payments. In first-quarter fiscal 2022 (ended Jan 31, 2022), the company paid out dividends worth $29.7 million to shareholders and repurchased shares worth $35 million. Also, the company hiked the quarterly dividend rate by 31% to 51 cents in August 2021. It is worth noting that exiting the fiscal first quarter, it was left to repurchase shares worth $359.1 million under its share repurchase program.
Estimate Revisions: In the past 60 days, the Zacks Consensus Estimate for fiscal 2022 earnings has moved up from $8.95 to $9.05 on five upward estimate revisions versus none downward. The consensus estimate for fiscal 2023 (ending October 2023) earnings has increased from $9.61 to $9.74 on four upward estimate revisions against none downward.
Other Stocks to Consider
Some other top-ranked companies from the same space are discussed below.
Dover Corporation DOV presently carries a Zacks Rank #2. The company delivered a four-quarter earnings surprise of 12.34%, on average.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Dover’s earnings estimates have increased 4.1% for 2022 in the past 60 days. Its shares have gained 9.9% in the past year.
Standex International Corporation SXI presently has a Zacks Rank #2. Its earnings surprise in the last four quarters was 5.85%, on average.
In the past 60 days, Standex’s earnings estimates have increased 5.9% for fiscal 2022 (ending June 2022). SXI’s shares have lost 2.5% in the past year.
IDEX Corporation IEX presently carries a Zacks Rank #2. Its earnings surprise in the last four quarters was 1.46%, on average.
In the past 60 days, IDEX’s earnings estimates have increased 4.2% for 2022. IEX’s shares have lost 8.5% in the past year.
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