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Nordson Corporation NDSN currently boasts robust prospects on strength in its businesses, acquired assets and a sound capital-deployment strategy.
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The currently Zacks Rank #2 (Buy) player has a market capitalization of $12.6 billion. In the past month, the stock has declined 0.7% against the industry’s growth of 1.7%.
Let’s delve into the factors that make investments in NDSN a smart choice at the moment.
Business Strength: Nordson stands to benefit from solid demand in electronics, medical and industrial end markets. In the quarters ahead, a well-diversified business structure, product launches and a large customer base in various industries, including packaging, electronics, non-wovens and others will likely benefit the company. For the third quarter of fiscal 2022 (ending June 2022), NDSN anticipates adjusted earnings per share of $2.40-$2.45 while revenues are expected to be $640-$655 million.
Benefits From Acquisitions: NDSN focuses on strengthening and expanding its businesses through the acquisition of assets. Nordson’s NDC Technologies takeover (November 2021) expanded its test and inspection platform and strengthened its position in the electronics end market. The buyout of vivaMOS Ltd. (in September 2020) added vigor to its test and inspection capabilities. Also, NDSN acquired Fluortek, Inc. in June 2020. The latter strengthened the medical product lines of the former.
Rewards to Shareholders: Nordson adds shareholder value through share repurchases and dividend payouts. In the first six months of 2022, NDSN paid out dividends worth $59.3 million and repurchased shares worth $140.5 million. NDSN also hiked the quarterly dividend rate by 31% to 51 cents in August 2021. Exiting the fiscal second quarter (ended March 2022), NDSN was left to repurchase shares worth $253.8 million under its share buyback program.
Northbound Estimate Revisions: In the past 60 days, the Zacks Consensus Estimate for fiscal 2022 (ending October 2022) earnings has moved up from $9.05 to $9.33 on five upward estimate revisions against none downward. Further, the consensus estimate for fiscal 2023 (ending October 2023) earnings has increased from $9.74 to $9.87 on three upward estimate revisions with no southbound movement.
Zacks Rank & Stocks to Consider
Some other-top ranked companies from the industrial products sector are discussed below:
Applied Industrial Technologies, Inc. AIT presently sports a Zacks Rank #1. AIT delivered a trailing four-quarter earnings surprise of 25.4%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AIT’s earnings estimates have increased 5.9% for fiscal 2022 (ending June 2022) in the past 60 days. Its shares have rallied 1.6% in the past month.
Roper Technologies, Inc. ROP presently has a Zacks Rank #2 (Buy). Its earnings surprise in the last four quarters was 2%, on average.
In the past 60 days, ROP’s earnings estimates have increased 1.2% for 2022. The stock has declined 3.3% in the past month.
IDEX Corporation IEX is presently Zacks #2 Ranked. IEX’s earnings surprise in the last four quarters was 2.8%, on average.
In the past 60 days, the stock’s earnings estimates have increased 3.4% for 2022. The stock has increased 1.1% in the past month.
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Roper Technologies, Inc. (ROP) : Free Stock Analysis Report
Applied Industrial Technologies, Inc. (AIT) : Free Stock Analysis Report
IDEX Corporation (IEX) : Free Stock Analysis Report
Nordson Corporation (NDSN) : Free Stock Analysis Report
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