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Reasons to Retain Nordson (NDSN) Stock in Your Portfolio Now

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Nordson Corporation (NDSN - Free Report) has been benefiting from the Industrial Precision Solutions segment and accretive acquisitions despite softness in the Advanced Technology Solutions, and Medical and Fluid Solutions segments.

Here are a few reasons why investors should retain the stock for the time being.

Growth Catalysts

Business Strength: Nordson’s diversified business structure is a boon. Strong customer demand for the polymer processing, industrial coatings and packaging product lines, combined with the execution of the Ascend strategy within the Industrial Precision Solutions segment, has been supporting the company’s performance. Investments in automation, Artificial Intelligence, memory and electronic product innovation are likely to drive NDSN’s growth.

Expansion Efforts: The company’s expansion initiative is expected to drive its growth. Nordson acquired ARAG Group and its subsidiaries in August 2023. The acquisition expanded NDSN’s core capabilities in precision dispensing technology, helping it foray into the rapidly growing, precision agriculture end-market. ARAG is part of the company’s Industrial Precision Solutions segment. In November 2022, Nordson acquired CyberOptics Corporation, expanding its semiconductor test and inspection capabilities. In fiscal 2023 (ended Oct 31, 2023), the company's acquired assets boosted its total revenues by 6.9%.

Rewards to Shareholders: NDSN continues to increase shareholders’ value through dividend payments & share repurchases. In August 2023, the company hiked its dividend by 5% to 68 cents per share. This marks NDSN’s 60th consecutive year of dividend increase. In fiscal 2023, Nordson paid out dividends of $150.4 million, up 19.4% year over year. In the same period, it bought back shares worth $78.2 million. In September 2022, the company’s board authorized the repurchase of up to an additional $500 million in shares on top of the existing share repurchase authorization.

In light of the above-mentioned positives, we believe, investors should retain NDSN stock for now, as suggested by its current Zacks Rank #3 (Hold). In the past year, shares of the company have risen 8.7%.

Zacks Investment Research
Image Source: Zacks Investment Research

Stocks to Consider

Some better-ranked companies from the Industrial Products sector have been discussed below.

Applied Industrial Technologies, Inc. (AIT - Free Report) presently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter average earnings surprise of 10.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

AIT’s earnings estimates for fiscal 2024 have remained steady in the past 60 days. Shares of Applied Industrial have risen 31.8% in the past year.


AZZ Inc. (AZZ - Free Report) currently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 37.5%.

In the past 60 days, the 2024 bottom-line estimate for AZZ has increased 4.9%. The stock has soared 76.1% in the past year.

Brady Corporation (BRC - Free Report) presently carries a Zacks Rank of 2. BRC delivered a trailing four-quarter average earnings surprise of 7%.

In the past 60 days, estimates for Brady’s fiscal 2024 earnings have remained steady. The stock has risen 18.6% in the past year.

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