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Here's Why It is Appropriate to Invest in Donaldson Stock Right Now
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Key Takeaways
Donaldson's Mobile Solutions unit is boosted by aftermarket growth and recovery in agriculture markets.
Industrial Solutions gains from U.S. and Europe demand for dust collection gear and aerospace momentum.
Life Sciences expansion via Medica and Univercells deals diversifies into medical devices and water sectors.
Donaldson Company, Inc. (DCI - Free Report) has been benefiting from strength across all segments. Benefits from acquired assets are likely to drive its performance in the quarters ahead.
DCI currently carries a Zacks Rank #2 (Buy). In the past year, the company has gained 9.9% against the industry’s 6.8% decline.
Image Source: Zacks Investment Research
Let’s delve into the factors that make this company a smart investment choice at the moment.
Business Strength: Donaldson’s Mobile Solutions segment is gaining from higher volume in the aftermarket business, driven by positive market trends and the impact of expanded market share. Signs of recovery in the off-road business, owing to increased demand in agriculture markets, also augur well.
The Industrial Solutions segment is supported by strength in the Industrial Filtration Solutions business. Increase in demand for new dust collection equipment in the United States and Europe and power generation project timing are driving the segment’s performance. Also, strength in the aerospace and defense business, aided by solid momentum in the commercial aerospace market due to increased demand for new equipment, bodes well. An increase in demand for disk drives and food & beverage products in the Asia Pacific region is boosting the Life Sciences segment.
Expansion Efforts: Acquisitions have been Donaldson's preferred mode of business expansion till date. The company completed the acquisition of a 49% minority stake in Medica S.p.A. in August 2024. The inclusion of Medica’s technology and expertise in filtration products enabled DCI to penetrate new markets and diversify its offerings in the medical device and water purification sectors. In June 2023, the company acquired Univercells Technologies, expanding its growing offering in the life sciences industry. Univercells was added to Donaldson’s Life Sciences segment.
Rewards to Shareholders: DCI’s commitment to rewarding shareholders through dividends and share buybacks is encouraging. The company paid dividends worth $333.6 million in fiscal 2025 (ended July 31, 2025). It also bought back shares worth $162.7 million in the same period. It is worth noting that its quarterly dividend was hiked 11.1% in May 2025. The company has raised its dividend for 29 consecutive years.
Northbound Estimate Revision: In the past 60 days, the Zacks Consensus Estimate for fiscal 2026 (ending July 2026) & fiscal 2027 (ending July 2026) earnings has been revised 3.1% and 2.1% upward, respectively.
Other Stocks to Consider
Some other top-ranked companies are discussed below.
GHM delivered a trailing four-quarter average earnings surprise of 64%. In the past 60 days, the Zacks Consensus Estimate for Graham’s 2025 earnings has increased 15.4%.
Dover Corporation (DOV - Free Report) presently carries a Zacks Rank of 2. DOV delivered a trailing four-quarter average earnings surprise of 4%.
In the past 60 days, the consensus estimate for DOV’s 2025 earnings has inched up a penny.
DNOW Inc. (DNOW - Free Report) presently carries a Zacks Rank of 2. DNOW delivered a trailing four-quarter average earnings surprise of 44.1%.
In the past 60 days, the consensus estimate for DNOW’s 2025 earnings has increased 10.5%.
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Here's Why It is Appropriate to Invest in Donaldson Stock Right Now
Key Takeaways
Donaldson Company, Inc. (DCI - Free Report) has been benefiting from strength across all segments. Benefits from acquired assets are likely to drive its performance in the quarters ahead.
DCI currently carries a Zacks Rank #2 (Buy). In the past year, the company has gained 9.9% against the industry’s 6.8% decline.
Image Source: Zacks Investment Research
Let’s delve into the factors that make this company a smart investment choice at the moment.
Business Strength: Donaldson’s Mobile Solutions segment is gaining from higher volume in the aftermarket business, driven by positive market trends and the impact of expanded market share. Signs of recovery in the off-road business, owing to increased demand in agriculture markets, also augur well.
The Industrial Solutions segment is supported by strength in the Industrial Filtration Solutions business. Increase in demand for new dust collection equipment in the United States and Europe and power generation project timing are driving the segment’s performance. Also, strength in the aerospace and defense business, aided by solid momentum in the commercial aerospace market due to increased demand for new equipment, bodes well. An increase in demand for disk drives and food & beverage products in the Asia Pacific region is boosting the Life Sciences segment.
Expansion Efforts: Acquisitions have been Donaldson's preferred mode of business expansion till date. The company completed the acquisition of a 49% minority stake in Medica S.p.A. in August 2024. The inclusion of Medica’s technology and expertise in filtration products enabled DCI to penetrate new markets and diversify its offerings in the medical device and water purification sectors. In June 2023, the company acquired Univercells Technologies, expanding its growing offering in the life sciences industry. Univercells was added to Donaldson’s Life Sciences segment.
Rewards to Shareholders: DCI’s commitment to rewarding shareholders through dividends and share buybacks is encouraging. The company paid dividends worth $333.6 million in fiscal 2025 (ended July 31, 2025). It also bought back shares worth $162.7 million in the same period. It is worth noting that its quarterly dividend was hiked 11.1% in May 2025. The company has raised its dividend for 29 consecutive years.
Northbound Estimate Revision: In the past 60 days, the Zacks Consensus Estimate for fiscal 2026 (ending July 2026) & fiscal 2027 (ending July 2026) earnings has been revised 3.1% and 2.1% upward, respectively.
Other Stocks to Consider
Some other top-ranked companies are discussed below.
Graham Corporation (GHM - Free Report) currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GHM delivered a trailing four-quarter average earnings surprise of 64%. In the past 60 days, the Zacks Consensus Estimate for Graham’s 2025 earnings has increased 15.4%.
Dover Corporation (DOV - Free Report) presently carries a Zacks Rank of 2. DOV delivered a trailing four-quarter average earnings surprise of 4%.
In the past 60 days, the consensus estimate for DOV’s 2025 earnings has inched up a penny.
DNOW Inc. (DNOW - Free Report) presently carries a Zacks Rank of 2. DNOW delivered a trailing four-quarter average earnings surprise of 44.1%.
In the past 60 days, the consensus estimate for DNOW’s 2025 earnings has increased 10.5%.