Dover Corporation (DOV - Free Report) recently appointed Richard J. Tobin as its new president and chief executive officer (CEO), effective Mar 1, 2018.
Tobin has had a career spanning 30 years in the international management and financial services industry. Prior to Dover, he was serving as the president and CEO of CNH Industrial, N.V. (CNHI - Free Report) . Tobin has led CNH Industrial for more than six years since its inception.
Tobin’s appointment follows the retirement of Dover’s long-time president and CEO, Robert A. Livingston. Livingston, who has served the company for nine years, will retire at the end of April. Tobin will also be part of Dover’s board of directors and guide it through the next phase of evolution.
The latest CEO appointment comes when Dover is undergoing a portfolio transition. In December 2017, the company decided to spin-off its Wellsite business, now known as Apergy, into a stand-alone, publicly-traded company.
Dover's Wellsite business, which includes Dover Artificial Lift, Dover Energy Automation, and US Synthetic, operates in the oil & gas drilling and production industry. This spin-off will help the company focus on its less volatile core platforms. The transaction is likely to close by May 2018.
Notably, Dover’ shares rose more than 4% yesterday to close at $103.91 following the announcement. Moreover, the company has outperformed its industry with respect to share price performance in the last year. The stock has gained 33%, while the industry recorded growth of 23%.
Thus, Dover will gain from continued efforts to simplify its portfolio. It will also benefit from opportunities in the fast-growing digital textile printing market. The company’s comprehensive solutions, including equipment, ink and software, position it well to fully capitalize on this technology shift.
Zacks Rank & Other Key Picks
Dover sports a Zacks Rank #1 (Strong Buy).
Other top-ranked stocks in the same space include Applied Industrial Technologies, Inc. (AIT - Free Report) and Barnes Group, Inc. (B - Free Report) . Both stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Applied Industrial Technologies has an expected long-term earnings growth rate of 12%. The company’s shares have gone up 19% in the past year.
Barnes Group has an expected long-term earnings growth rate of 10%. The stock has rallied 24.7% in a year’s time.
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