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Reasons Why Investing in Nordson Stock Seems Prudent Right Now

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Key Takeaways

  • Nordson gains from strong demand across electronic processing and sensor product lines.
  • Recent acquisitions, including Atrion and ARAG, expand medical and precision dispensing reach.
  • Higher dividends and buybacks reflect Nordson's commitment to rewarding shareholders.

Nordson Corporation (NDSN - Free Report) is poised to gain from the solid momentum in the Advanced Technology Solutions segment. Handsome rewards to shareholders add to the stock’s appeal.

Shares of NDSN have gained 10.4% in the year-to-date period compared with the industry‘s 5.9% growth. The company currently carries a Zacks Rank #2 (Buy).

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Let’s delve into the factors that make this company a smart investment choice at the moment.

Business Strength: Strength in the Advanced Technology Solutions segment, driven by growing demand for electronic processing and optical sensors, and electronics dispensing product lines within the semiconductor and electronics end markets, is aiding the company. Strong customer demand for the nonwovens, precision agriculture, packaging and consumer non-durable product lines is also a positive for it.

Accretive Acquisitions: NDSN is focused on strengthening its competency through acquisitions. In the third quarter of fiscal 2025 (ended July 31, 2025), acquired assets boosted the company’s total revenues by 8%. In August 2024, Nordson completed the acquisition of Atrion Corp. The inclusion of Atrion’s three major businesses — Halkey Roberts, Atrion Medical and Quest Medical — enabled the company to expand its medical offerings in the infusion and cardiovascular therapies market. The buyout was combined with Nordson's medical business.

In August 2023, the company acquired ARAG Group and its subsidiaries. The acquisition expanded Nordson’s core capabilities in precision dispensing technology, helping it foray into the rapidly growing precision agriculture end market. ARAG is part of its Industrial Precision Solutions segment.

Rewards to Shareholders: The company’s measures to reward its shareholders through dividend payments are noteworthy. In the first nine months of fiscal 2025, Nordson paid out dividends of $133 million, up 13.9% year over year. In the same period, it bought back treasury shares worth $218.2 million compared with $34.1 million in the year-ago period. In August 2025, the company hiked its dividend by 5% to 82 cents per share.

Northbound Estimate Revision: In the past 60 days, the Zacks Consensus Estimate for fiscal 2025 (ending October 2025) earnings has been revised 1% upward.

Other Stocks to Consider

Some other top-ranked companies are discussed below.

Crane Company (CR - 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.

CR delivered a trailing four-quarter average earnings surprise of 7.5%. In the past 60 days, the Zacks Consensus Estimate for Crane’s 2025 earnings has increased 0.9%.

Flowserve Corporation (FLS - Free Report) presently carries a Zacks Rank of 2. FLS delivered a trailing four-quarter average earnings surprise of 5.5%.

In the past 60 days, the consensus estimate for Flowserve’s 2025 earnings has increased 0.9%.

Parker-Hannifin Corporation (PH - Free Report) presently carries a Zacks Rank of 2. PH delivered a trailing four-quarter average earnings surprise of 4.5%.

In the past 60 days, the consensus estimate for Parker-Hannifin’s fiscal 2026 earnings has increased 0.1%.

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