Dover Corporation ( DOV Quick Quote DOV - Free Report) recently acquired Innovative Control Systems, Inc. (“ICS”) in a bid to expand its offerings in the growing vehicle wash market. Based-in Bethlehem, PA, ICS is a leading provider of car wash controllers, payment terminals, point-of-sale, and car wash site management software solutions. ICS is well known for its solid engineering and reliability, advance customer services, and innovative solutions with more than three decades of experience in the carwash industry. ICS has now become part of Dover’s Fueling Solutions segment. The vehicle wash solutions market is an attractive growth prospect for Dover’s Fueling Solutions business as it is gaining popularity on the increasing demand for automatic car washes among convenience retailers and independent operators. ICS’s high-value hardware and software solutions enhance Dover’s vehicle wash business mix and recurring revenue stream. Together, the companies’ vehicle wash go-to-market channels, convenience retail markets as well as aftermarket support services will fuel growth in the vehicle wash market. Dover has a long tradition of making successful acquisitions in diverse end markets. In 2019, the company acquired three businesses for a total consideration of $216.4 million. The company made these acquisitions to complement and expand the existing operations within the Fueling Solutions and Pumps & Process Solutions segments. Dover deployed nearly $250 million on accretive acquisitions in 2020 and continues to pursue attractive deals. The company is also gaining from product digitization, e-commerce, new product development, and inorganic investment in core business platforms. Further, Dover’s productivity and cost-control initiatives will boost its margin in the near term. During the third-quarter earnings call, Dover raised the 2020 adjusted earnings per share guidance on the solid year-to-date margin performance and strong order backlog. The company now expects adjusted earnings per share between $5.40 and $5.45 compared with the prior guidance of $5.00-$5.25. The company’s December-end quarter results are likely to have gained from the robust order backlog, improved demand across its segments and stellar growth in the biopharma, aerospace & defense, heat exchangers and marking & coding business. Price Performance
Dover’s shares have gained 13% over the past three months, outperforming the
industry’s growth of 11.5%. Zacks Rank & Other Stocks to Consider
Dover currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks in the Industrial Products sector include AGCO Corporation ( AGCO Quick Quote AGCO - Free Report) , Crown Holdings, Inc. ( CCK Quick Quote CCK - Free Report) and Ball Corporation ( BLL Quick Quote BLL - Free Report) , each carrying a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. AGCO has a long-term earnings growth rate of 13.2%. The stock has appreciated 42% in three months’ time. Crown Holdings has a long-term earnings growth rate of 5%. Shares of the company have gained 24.8% in the past three months. Ball Corp has a long-term earnings growth rate of 5%. Over the past three months, the company’s shares have rallied 12.1%. Biggest Tech Breakthrough in a Generation
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