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Why Nordson (NDSN) is an Attractive Bet for Investors Now
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Nordson Corporation (NDSN - Free Report) is well poised for growth, courtesy of strength across its businesses, solid end-market demand, gains from acquired assets and shareholder-friendly policies.
Image Source: Zacks Investment Research
The currently Zacks Rank #2 (Buy) player has a market capitalization of $12.9 billion. In the past month, the stock has gained 4.6% against the industry’s decline of 1.2%.
Let’s delve into the factors that make investments in NDSN a smart choice at the moment.
Business Strength: Nordson has been benefiting from strong demand for all product lines in the medical, industrial and electronics end markets. A well-diversified business structure, product launches, solid end-market demand and a large customer base in electronics, non-woven, medical, appliances, transportation, energy, building and construction, general product assembly and finishing industries are likely to boost the NDSN’s performance in the quarters ahead. For second-quarter fiscal 2022 (ending April 2022), NDSN’s adjusted earnings per share and revenues are likely to be $2.20-$2.30 and $625-$649 million, respectively.
Acquisition Benefits: Nordson intends to strengthen and expand its businesses through acquisitions. NDSN’s buyout of NDC Technologies (November 2021) is benefiting it by expanding into the new end markets like film extrusion & converting, consumer non-durable and others. Its position is also being strengthened in the electronics end market. NDSN acquired vivaMOS Ltd. (in September 2020) and Fluortek, Inc. (in June 2020). While vivaMOS added more vigour to its test and inspection capabilities, Fluortek strengthened its medical product lines.
Rewards to Shareholders: Nordson remains committed to rewarding its shareholders through dividend payouts and share buyback programs. For instance, in the first quarter of fiscal 2022 (ended January, 2022), NDSN paid out dividends worth $29.7 million and repurchased shares worth $35 million. NDSN’s quarterly dividend rate was last hiked in August 2021 by 31%. Shares worth $359.1 million were outstanding under its share repurchase program, exiting the fiscal first quarter.
Estimate Revisions: In the past 60 days, the Zacks Consensus Estimate for fiscal 2022 (ending October 2022) earnings has moved up from $8.95 to $9.05 on five upward estimate revisions against none downward. Further, the consensus estimate for fiscal 2023 (ending October 2023) earnings has increased from $9.61 to $9.74 on four upward estimate revisions with no southbound movement.
Other Stocks to Consider
Some other top-ranked companies from the Zacks Industrial Products sector are discussed below.
In the past 60 days, AA’s earnings estimates have increased 86.7% for 2022. Alcoa’s shares have gained 14.5% in the past month.
AGCO Corporation (AGCO - Free Report) presently flaunts a Zacks Rank of 1. AGCO delivered a trailing four-quarter earnings surprise of 56.7%, on average.
Earnings estimates for AGCO have increased 10.7% for 2022 in the past 60 days. Its shares have rallied 5.6% in the past month.
Ferguson plc (FERG - Free Report) presently carries a Zacks Rank of 2. Its earnings surprise in the last four quarters was 14.2%, on average.
In the past 60 days, earnings estimates for FERG have increased 7% for fiscal 2022 (ending July 2022). The stock has declined 16.6% in the past month.
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Why Nordson (NDSN) is an Attractive Bet for Investors Now
Nordson Corporation (NDSN - Free Report) is well poised for growth, courtesy of strength across its businesses, solid end-market demand, gains from acquired assets and shareholder-friendly policies.
Image Source: Zacks Investment Research
The currently Zacks Rank #2 (Buy) player has a market capitalization of $12.9 billion. In the past month, the stock has gained 4.6% against the industry’s decline of 1.2%.
Let’s delve into the factors that make investments in NDSN a smart choice at the moment.
Business Strength: Nordson has been benefiting from strong demand for all product lines in the medical, industrial and electronics end markets. A well-diversified business structure, product launches, solid end-market demand and a large customer base in electronics, non-woven, medical, appliances, transportation, energy, building and construction, general product assembly and finishing industries are likely to boost the NDSN’s performance in the quarters ahead. For second-quarter fiscal 2022 (ending April 2022), NDSN’s adjusted earnings per share and revenues are likely to be $2.20-$2.30 and $625-$649 million, respectively.
Acquisition Benefits: Nordson intends to strengthen and expand its businesses through acquisitions. NDSN’s buyout of NDC Technologies (November 2021) is benefiting it by expanding into the new end markets like film extrusion & converting, consumer non-durable and others. Its position is also being strengthened in the electronics end market. NDSN acquired vivaMOS Ltd. (in September 2020) and Fluortek, Inc. (in June 2020). While vivaMOS added more vigour to its test and inspection capabilities, Fluortek strengthened its medical product lines.
Rewards to Shareholders: Nordson remains committed to rewarding its shareholders through dividend payouts and share buyback programs. For instance, in the first quarter of fiscal 2022 (ended January, 2022), NDSN paid out dividends worth $29.7 million and repurchased shares worth $35 million. NDSN’s quarterly dividend rate was last hiked in August 2021 by 31%. Shares worth $359.1 million were outstanding under its share repurchase program, exiting the fiscal first quarter.
Estimate Revisions: In the past 60 days, the Zacks Consensus Estimate for fiscal 2022 (ending October 2022) earnings has moved up from $8.95 to $9.05 on five upward estimate revisions against none downward. Further, the consensus estimate for fiscal 2023 (ending October 2023) earnings has increased from $9.61 to $9.74 on four upward estimate revisions with no southbound movement.
Other Stocks to Consider
Some other top-ranked companies from the Zacks Industrial Products sector are discussed below.
Alcoa Corporation (AA - Free Report) presently sports a Zacks Rank #1 (Strong Buy). Its earnings surprise in the last four quarters was 27.1%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, AA’s earnings estimates have increased 86.7% for 2022. Alcoa’s shares have gained 14.5% in the past month.
AGCO Corporation (AGCO - Free Report) presently flaunts a Zacks Rank of 1. AGCO delivered a trailing four-quarter earnings surprise of 56.7%, on average.
Earnings estimates for AGCO have increased 10.7% for 2022 in the past 60 days. Its shares have rallied 5.6% in the past month.
Ferguson plc (FERG - Free Report) presently carries a Zacks Rank of 2. Its earnings surprise in the last four quarters was 14.2%, on average.
In the past 60 days, earnings estimates for FERG have increased 7% for fiscal 2022 (ending July 2022). The stock has declined 16.6% in the past month.