Zacks Investment Research upgraded Nordson Corporation (NDSN Quick QuoteNDSN - Free Report) to a Zacks Rank #1 (Strong Buy) on Aug 26, 2016. Going by the Zacks model, companies sporting a Zacks Rank #1 have strong chances of outperforming the broader market over the next few quarters.

Why the Upgrade?

Market sentiments have been favoring Nordson Corporation, as evident from the year-to-date return of roughly 56%. Also, the company posted an average positive earnings surprise of 9.13% for the last four quarters. In the recently reported third-quarter fiscal 2016 (ended Jul 2016), the company’s earnings of $1.47 per share exceeded the Zacks Consensus Estimate of $1.34 by 9.7%.

The company’s revenues of $489 million exceeded the Zacks Consensus Estimate of $481 million as well as grew 5.9% year over year on the back of higher sales from Adhesive dispensing systems and Advanced technology systems.

Going forward, Nordson Corporation anticipates benefiting from higher customer project activities, solid order rates and stronger backlog. The company anticipates earnings in the range of $1.15–$1.27 per share for the fiscal fourth quarter while revenues are projected to increase 6–10% year over year.

Impressive financial results and future outlook have boosted investors’ optimism regarding Nordson Corporation’s prospects. Over the last seven days, the Zacks Consensus Estimate for the stock has increased 4.7% to $4.47 per share for fiscal 2016 and 4.3% to $4.85 for fiscal 2017, while the same for fourth-quarter fiscal 2016 increased 6% to $1.23. Also, the company has an Earnings ESP of +0.67% for fiscal 2016 and +0.83% for fiscal 2017.

Other Stocks to Consider

Nordson Corporation currently has a market capitalization of approximately $5.7 billion. Other similarly ranked stocks in the machinery industry include DXP Enterprises, Inc. (DXPE Quick QuoteDXPE - Free Report) , Gorman-Rupp Co. (GRC Quick QuoteGRC - Free Report) and Tennant Company (TNC Quick QuoteTNC - Free Report) .

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>