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Nordson (NDSN) Soars 7.1%: Is Further Upside Left in the Stock?

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Nordson Corporation (NDSN - Free Report) shares soared 7.1% in the last trading session to close at $216.83. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 5.2% loss over the past four weeks.

Nordson’s rally is largely driven by optimism over the company’s solid momentum in its Industrial Precision Solutions and Advanced Technology Solutions segments, backed by strength in its consumer non-durable, industrial, electronics and medical end markets. Notably, its Industrial Precision Solutions and Advanced Technology Solutions segments reported organic revenue growth of 8.3% and 12.7% year over year in the second quarter of fiscal 2021 (ended Apr 30, 2021). The company currently expects its overall revenues to grow in the range of 8-10% year over year in fiscal 2021 (ending October 2021).

Price and Consensus

Price Consensus Chart for NDSN

This maker of adhesives and industrial coatings is expected to post quarterly earnings of $1.76 per share in its upcoming report, which represents a year-over-year change of +23.9%. Revenues are expected to be $566.07 million, up 5.2% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Nordson, the consensus EPS estimate for the quarter has been revised 1.1% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on NDSN going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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