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Nordson (NDSN) is an Incredible Growth Stock

Alex Smith

Aoris Investment Management recently released its Q1 2020 Investor Letter, a copy of which you can download below. The Aoris International Fund aims to generate returns of 8–12% p.a. over a market cycle. The portfolio is long-only and highly selective. You should check out Aoris Investment Management’s top 5 stock picks for investors to buy right now, which could be the biggest winners of the stock market crash. There weren’t a lot of funds who could deliver these kinds of returns without shorting the market or using aggressive put options.

In the said letter, Aoris Investment Management highlighted a few stocks and Nordson Corp (NASDAQ:NDSN) is one of them. Nordson designs and manufactures dispensing equipment for consumer and industrial adhesives, sealants and coatings. Year-to-date, Nordson Corp (NASDAQ:NDSN) stock gained 6.9% and on May 21st it had a closing price of $175.04. Here is what Aoris Investment Management said:

"Nordson is a maker of highly engineered dispensing and extrusion equipment, used in applications in consumer electronics, medical devices, automotive manufacturing and the packaged of basic consumer non-durable products. The company has a strong culture, though it has a new CEO and a CFO due to retire this year. Nordson has net debt to EBITDA of 1.9x. a level at the higher end of our comfort level given the cyclicality of earnings, but at a level we do not anticipate causing the company any difficulties.

Like Graco, we expect Nordson’s earnings this year to fall materially, reflecting the decline in industrial and manufacturing activity. Nordson has an excellent long-term record of identifying new applications for its proprietary technology, benefiting from its direct technical distribution model and close relationship with its customers, and we expect this to produce strong growth as the cycle recovers."

Nordson Corporation (NASDAQ:NDSN)

In Q4 2019, the number of bullish hedge fund positions on Nordson Corp (NASDAQ:NDSN) stock increased by about 81% from the previous quarter (see the chart here), so a number of other hedge fund managers seem to agree with NDSN’s growth potential. Our calculations showed that Nordson Corp (NASDAQ:NDSN) isn’t among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds' poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, we believe electric vehicles and energy storage are set to become giant markets, and we want to take advantage of the declining lithium prices amid the COVID-19 pandemic. So we are checking out investment opportunities like this one. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. Our best call in 2020 was shorting the market when S&P 500 was trading at 3150 after realizing the coronavirus pandemic’s significance before most investors. You can subscribe to our free enewsletter below to receive our stories in your inbox:

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