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Dover (DOV) Hits 52-Week High on Improving Energy Segment
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Shares of Dover Corporation (DOV - Free Report) reached a fresh 52-week high of $74.90 on Aug 23, before closing lower at $74.16. The stock price appreciation came on the back of benefits expected from an improvement in its Energy segment.
Dover has a market capitalization of roughly $11.5 billion. Average volume of shares traded over the last three months is around 1.31 million. The stock flaunts a one-year return of about 32.7% and a year-to-date return of around 21%. Moreover, it has beaten the Zacks Consensus Estimate in three of the trailing four quarters, with an average positive surprise of 1.21%.
Dover posted an 11% year-over-year decline in second-quarter 2016 adjusted earnings per share though the figure beat the Zacks Consensus Estimate by a penny. Dover intends to remain focused on expanding its business in key markets that offer significant growth potential and lead to organic and inorganic growth in all the segments.
Notably, Dover maintained its full-year 2016 revenue guidance for the Energy segment and expects modest sequential improvement. The company believes the stabilization of North American rig count and the possibility of constructive oil prices will modestly improve the segment’s results in the second half of 2016 and drive growth in 2017.
Dover expects that the artificial lift business will benefit from increased MRO (Maintenance, repair and operations) activity at the well site. It also believes an increased completion rate for drilled but uncompleted wells will continue, especially in lower-cost basins like the Permian. Overall, Dover anticipates the segment's second-half revenue to be about 2% higher than its first-half revenue.
Further, Dover’s second-quarter results, excluding deal costs and one-time items, were generally in line with management's expectations. Within the quarter, June revenues and earnings had significantly improved from April's results. The company expects to see this improved performance to carry into the third quarter and subsequently into the second half of the year.
Recently, Dover increased its quarterly dividend by 5% to 44 cents per share from the prior payout of 42 cents per share. This increased dividend will be paid on Sep 15, 2016, to shareholders of record as of Aug 31, 2016.
Moreover, Dover stands to benefit from its acquisition strategy and new products offerings.
Dover currently has a Zacks Rank #3 (Hold).
Stocks to Consider
Better-ranked stocks in the sector include DXP Enterprises, Inc. (DXPE - Free Report) , Gorman-Rupp Co. (GRC - Free Report) and Tennant Company (TNC - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
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Dover (DOV) Hits 52-Week High on Improving Energy Segment
Shares of Dover Corporation (DOV - Free Report) reached a fresh 52-week high of $74.90 on Aug 23, before closing lower at $74.16. The stock price appreciation came on the back of benefits expected from an improvement in its Energy segment.
Dover has a market capitalization of roughly $11.5 billion. Average volume of shares traded over the last three months is around 1.31 million. The stock flaunts a one-year return of about 32.7% and a year-to-date return of around 21%. Moreover, it has beaten the Zacks Consensus Estimate in three of the trailing four quarters, with an average positive surprise of 1.21%.
DOVER CORP Price and Consensus
DOVER CORP Price and Consensus | DOVER CORP Quote
Driving Factors
Dover posted an 11% year-over-year decline in second-quarter 2016 adjusted earnings per share though the figure beat the Zacks Consensus Estimate by a penny. Dover intends to remain focused on expanding its business in key markets that offer significant growth potential and lead to organic and inorganic growth in all the segments.
Notably, Dover maintained its full-year 2016 revenue guidance for the Energy segment and expects modest sequential improvement. The company believes the stabilization of North American rig count and the possibility of constructive oil prices will modestly improve the segment’s results in the second half of 2016 and drive growth in 2017.
Dover expects that the artificial lift business will benefit from increased MRO (Maintenance, repair and operations) activity at the well site. It also believes an increased completion rate for drilled but uncompleted wells will continue, especially in lower-cost basins like the Permian. Overall, Dover anticipates the segment's second-half revenue to be about 2% higher than its first-half revenue.
Further, Dover’s second-quarter results, excluding deal costs and one-time items, were generally in line with management's expectations. Within the quarter, June revenues and earnings had significantly improved from April's results. The company expects to see this improved performance to carry into the third quarter and subsequently into the second half of the year.
Recently, Dover increased its quarterly dividend by 5% to 44 cents per share from the prior payout of 42 cents per share. This increased dividend will be paid on Sep 15, 2016, to shareholders of record as of Aug 31, 2016.
Moreover, Dover stands to benefit from its acquisition strategy and new products offerings.
Dover currently has a Zacks Rank #3 (Hold).
Stocks to Consider
Better-ranked stocks in the sector include DXP Enterprises, Inc. (DXPE - Free Report) , Gorman-Rupp Co. (GRC - Free Report) and Tennant Company (TNC - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>