We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why Hold Strategy is Apt for Donaldson (DCI) Stock
Read MoreHide Full Article
Donaldson Company, Inc. (DCI - Free Report) is benefiting from its strong product portfolio, solid demand and focus on innovation and growth investments despite adversities from the high cost of sales and foreign exchange headwinds. Presence in diverse end markets, including construction, mining, aerospace, defense and food & beverage, helps the company offset weaknesses associated with a single market.
Growth in On-Road and Off-Road sales, supported by elevated levels of medium and heavy-duty equipment production is driving DCI’s Mobile Solutions segment’s revenues. Aftermarket sales are being aided by improved global supply-chain conditions. Sales growth in industrial filtration solutions and aerospace and defense is supporting the Industrial Solutions segment’s sales.
Acquired assets are strengthening DCI’s top line. Donaldson acquired Isolere Bio in February 2023, which enabled it to create leading separation and filtration solutions for emerging genetic-based drugs. Also, the acquisition of Purilogics, LLC (June 2022) strengthened the company’s life sciences portfolio by leveraging the acquired entity’s unique product offerings. The Solaris Biotechnology (in November 2021) buyout strengthened its presence across several end markets, including food and beverage, biopharma and other major life sciences.
Donaldson’s efforts to reward its shareholders through dividend payments and share repurchases are noteworthy. The company’s dividend payments totaled $110.1 million in fiscal 2022 and $56.2 million in the first six months of fiscal 2023. It also bought back shares worth $171 million in fiscal 2022 and $115.2 million in the first six months of fiscal 2023.
IR’s earnings surprise in the last four quarters was 12.6%, on average. In the past 60 days, estimates for Ingersoll Rand’s 2023 earnings have increased 6%. The stock has rallied 5% in the past six months.
Alamo Group Inc. (ALG - Free Report) presently sports a Zacks Rank of 1. ALG’s earnings surprise in the last four quarters was 17.7%, on average.
In the past 60 days, estimates for Alamo’s 2023 earnings have increased 12.7%. The stock has gained 17.5% in the past six months.
Parker-Hannifin Corporation (PH - Free Report) presently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 12.4%, on average.
In the past 60 days, estimates for Parker-Hannifin’s fiscal 2023 (ending June 2023) earnings have increased 5.3%. The stock has gained 6.5% in the past six months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Here's Why Hold Strategy is Apt for Donaldson (DCI) Stock
Donaldson Company, Inc. (DCI - Free Report) is benefiting from its strong product portfolio, solid demand and focus on innovation and growth investments despite adversities from the high cost of sales and foreign exchange headwinds. Presence in diverse end markets, including construction, mining, aerospace, defense and food & beverage, helps the company offset weaknesses associated with a single market.
Growth in On-Road and Off-Road sales, supported by elevated levels of medium and heavy-duty equipment production is driving DCI’s Mobile Solutions segment’s revenues. Aftermarket sales are being aided by improved global supply-chain conditions. Sales growth in industrial filtration solutions and aerospace and defense is supporting the Industrial Solutions segment’s sales.
Acquired assets are strengthening DCI’s top line. Donaldson acquired Isolere Bio in February 2023, which enabled it to create leading separation and filtration solutions for emerging genetic-based drugs. Also, the acquisition of Purilogics, LLC (June 2022) strengthened the company’s life sciences portfolio by leveraging the acquired entity’s unique product offerings. The Solaris Biotechnology (in November 2021) buyout strengthened its presence across several end markets, including food and beverage, biopharma and other major life sciences.
Donaldson’s efforts to reward its shareholders through dividend payments and share repurchases are noteworthy. The company’s dividend payments totaled $110.1 million in fiscal 2022 and $56.2 million in the first six months of fiscal 2023. It also bought back shares worth $171 million in fiscal 2022 and $115.2 million in the first six months of fiscal 2023.
Donaldson Company, Inc. Price
Donaldson Company, Inc. price | Donaldson Company, Inc. Quote
In light of the above-mentioned positives, we believe, investors should retain DCI stock for now, as suggested by its current Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked companies from the Industrial Products sector are discussed below:
Ingersoll Rand Inc. (IR - Free Report) presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks.
IR’s earnings surprise in the last four quarters was 12.6%, on average. In the past 60 days, estimates for Ingersoll Rand’s 2023 earnings have increased 6%. The stock has rallied 5% in the past six months.
Alamo Group Inc. (ALG - Free Report) presently sports a Zacks Rank of 1. ALG’s earnings surprise in the last four quarters was 17.7%, on average.
In the past 60 days, estimates for Alamo’s 2023 earnings have increased 12.7%. The stock has gained 17.5% in the past six months.
Parker-Hannifin Corporation (PH - Free Report) presently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 12.4%, on average.
In the past 60 days, estimates for Parker-Hannifin’s fiscal 2023 (ending June 2023) earnings have increased 5.3%. The stock has gained 6.5% in the past six months.