Shares of Nordson Corporation (NDSN - Free Report) , a precision dispensing equipment manufacturer, reached a new 52-week high of $116.01 during its trading session on Jan 4. This apex improved upon the last 52-week high of $115.69 on Dec 21.
Post the release of fourth-quarter fiscal 2016 (ended Oct 31, 2016) results on Dec 14, 2016, shares of the company yielded 5% return, outperforming the negative return of 0.5% generated by the Zacks categorized Machinery General Industrial industry.
On Jan 4, Nordson Corporation closed its trading session at $115.94, yielding year-to-date return of roughly 3.5%. The trading volume for the session was 0.36 million shares. Positive earnings estimate revisions for fiscal 2017 and 2018, along with an expected earnings growth rate of 15% for the next five years indicate the stock’s potential for further price appreciation.
Growth Drivers
Nordson Corporation’s financial performance has been impressive over the last four quarters, as evident from an average positive earnings surprise of 15.40%. In the last reported quarter, the company surpassed the Zacks Consensus Estimate for earnings by 13.01% and for revenues by 5.6%.
In first-quarter fiscal 2017, Nordson Corporation anticipates benefiting from improved backlog, healthy order rates and organic growth as well as from sound response from customers in the electronics and medical end markets. Sales in the quarter are likely to increase in a range of 4−8%, including organic sales growth of 6−10%. Operating margin is predicted to be roughly 18%.
In addition, Nordson Corporation’s innovative product offerings will prove beneficial in the quarters ahead. In Dec 2016, the company introduced PureFlow hoses with RediFlex II mounts. The product has been designed to curtail the effects of adhesive degradation and hence, improve the life of hoses in high-performance environments. Also, the company believes in expanding its business through inorganic efforts as well as rewarding its shareholders through share buyback and dividend payments.
Estimate Revisions Show Potency
Over the last 30 days, the Zacks Consensus Estimate for Nordson Corporation grew 2.7% to $5.00 for fiscal 2017 and 1.9% to $5.39 for fiscal 2018. The earnings estimates represent year-over-year growth of 6.8% for fiscal 2017 and 7.9% for fiscal 2018.
With a market capitalization of $6.7 billion, Nordson Corporation currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the machinery industry include Altra Industrial Motion Corporation , RBC Bearings Incorporated and Sun Hydraulics Corporation . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Altra Industrial Motion Corporation’s financial performance has been impressive, with an average positive earnings surprise of 8.06% for the last four quarters. Also, earnings estimates for 2017 improved over the last 30 days.
RBC Bearings Incorporated’s financial performance has been impressive, with an average positive earnings surprise of 1.60% for the last four quarters. Also, earnings estimates for fiscal 2017 remained stable while improved for fiscal 2018, over the last 30 days.
Sun Hydraulics Corporation’s earnings estimates for 2017 improved over the past 30 days.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Shares of Nordson Corporation (NDSN - Free Report) , a precision dispensing equipment manufacturer, reached a new 52-week high of $116.01 during its trading session on Jan 4. This apex improved upon the last 52-week high of $115.69 on Dec 21.
Post the release of fourth-quarter fiscal 2016 (ended Oct 31, 2016) results on Dec 14, 2016, shares of the company yielded 5% return, outperforming the negative return of 0.5% generated by the Zacks categorized Machinery General Industrial industry.
On Jan 4, Nordson Corporation closed its trading session at $115.94, yielding year-to-date return of roughly 3.5%. The trading volume for the session was 0.36 million shares. Positive earnings estimate revisions for fiscal 2017 and 2018, along with an expected earnings growth rate of 15% for the next five years indicate the stock’s potential for further price appreciation.
Growth Drivers
Nordson Corporation’s financial performance has been impressive over the last four quarters, as evident from an average positive earnings surprise of 15.40%. In the last reported quarter, the company surpassed the Zacks Consensus Estimate for earnings by 13.01% and for revenues by 5.6%.
In first-quarter fiscal 2017, Nordson Corporation anticipates benefiting from improved backlog, healthy order rates and organic growth as well as from sound response from customers in the electronics and medical end markets. Sales in the quarter are likely to increase in a range of 4−8%, including organic sales growth of 6−10%. Operating margin is predicted to be roughly 18%.
In addition, Nordson Corporation’s innovative product offerings will prove beneficial in the quarters ahead. In Dec 2016, the company introduced PureFlow hoses with RediFlex II mounts. The product has been designed to curtail the effects of adhesive degradation and hence, improve the life of hoses in high-performance environments. Also, the company believes in expanding its business through inorganic efforts as well as rewarding its shareholders through share buyback and dividend payments.
Estimate Revisions Show Potency
Over the last 30 days, the Zacks Consensus Estimate for Nordson Corporation grew 2.7% to $5.00 for fiscal 2017 and 1.9% to $5.39 for fiscal 2018. The earnings estimates represent year-over-year growth of 6.8% for fiscal 2017 and 7.9% for fiscal 2018.
With a market capitalization of $6.7 billion, Nordson Corporation currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the machinery industry include Altra Industrial Motion Corporation , RBC Bearings Incorporated and Sun Hydraulics Corporation . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Altra Industrial Motion Corporation’s financial performance has been impressive, with an average positive earnings surprise of 8.06% for the last four quarters. Also, earnings estimates for 2017 improved over the last 30 days.
RBC Bearings Incorporated’s financial performance has been impressive, with an average positive earnings surprise of 1.60% for the last four quarters. Also, earnings estimates for fiscal 2017 remained stable while improved for fiscal 2018, over the last 30 days.
Sun Hydraulics Corporation’s earnings estimates for 2017 improved over the past 30 days.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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