Back to top

Image: Bigstock

Here's Why You Should Consider Investing in Nordson Stock Now

Read MoreHide Full Article

Key Takeaways

  • Nordson is benefiting from strong end-market demand, strategic acquisitions and shareholder-friendly policies.
  • Robust demand drove 31% organic sales growth in Advanced Technology and 11% in Medical and Fluid Solutions.
  • NDSN raised its fiscal 2026 sales outlook to $3.035-$3.075 billion, while earnings estimates continue to rise.

Nordson Corporation (NDSN - Free Report) stands to benefit from strength across its businesses, focus on operational excellence and acquired assets. The company remains focused on investing in growth opportunities and strengthening its long-term market position.

NDSN, which has a market capitalization of $18.3 billion, currently carries a Zacks Rank #2 (Buy). Let’s delve into the factors that have been aiding the firm for a while now.

End-Market Strength: Nordson is poised to gain from its diversified business structure, which helps mitigate the adverse impact of weakness in one end market with strength across the others. The company is witnessing strong momentum in the Medical and Fluid Solutions segment, organic sales from which increased 11% year over year in the third quarter of fiscal 2026 (ended July 2026). Increased demand for engineered fluid solutions and medical product lines is boosting the segment’s performance.

Solid demand for electronics dispense and test & inspection product lines is augmenting the Advanced Technology Solutions segment’s results. The segment’s organic sales increased 31% from the year-ago fiscal quarter’s level. Strength in the Industrial Precision Solutions segment, driven by higher demand for industrial coatings and polymer processing systems, is aiding the company. Healthy demand in consumer and industrial markets is also positive for the segment. Organic sales from this segment increased 3% year over year in the fiscal third quarter.

Fiscal 2026 Guidance Raised: Driven by strength across its businesses, Nordson raised its guidance. For fiscal 2026 (ending October 2026), the company currently anticipates sales to be in the range of $3.035-$3.075 billion compared with $2.93-$3.01 billion expected earlier.

Acquisition Benefits: The company intends to strengthen and expand its businesses through acquisitions. In March 2026, the company completed the CapstanAG buyout and integrated it into the Industrial Precision Solutions segment. The acquisition strengthened NDSN’s precision agriculture portfolio and expanded its presence in North America.

NDSN Stock’s Price Performance

Zacks Investment Research
Image Source: Zacks Investment Research

In the past six months, the company’s shares have gained 18.6% against the industry’s 6.6% decline.

Shareholder-Friendly Policies: Nordson remains committed to increasing shareholders’ value through dividend payments and share repurchases. In the first nine months of fiscal 2026, Nordson paid out dividends of $137.4 million, up 3.3% year over year. In the same period, it bought back treasury shares worth $158.8 million. In August 2026, the company hiked its dividend by 15% to 94 cents per share.

Upward Estimate Revisions: In the past 60 days, the Zacks Consensus Estimate for Nordson’s fiscal 2026 earnings has trended up from $11.59 per share to $11.83 on three upward estimate revisions against none downward. The consensus estimate for fiscal 2027 (ending October 2027) earnings increased from $12.47 per share to $12.73 on three upward estimate revisions against none downward.

Other Key Picks

Some other top-ranked companies from the same space are discussed below.

Helios Technologies (HLIO - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

HLIO delivered a trailing four-quarter average earnings surprise of 13.1%. In the past 60 days, the Zacks Consensus Estimate for Helios Technologies’ 2026 earnings has increased 10%.

IDEX Corporation (IEX - Free Report) presently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 7.7%. In the past 60 days, the consensus estimate for IEX’s 2026 earnings has increased 1.2%.

Parker-Hannifin Corporation (PH - Free Report) currently carries a Zacks Rank of 2. Parker-Hannifin delivered a trailing four-quarter average earnings surprise of 7.8%. In the past 60 days, the Zacks Consensus Estimate for PH’s fiscal 2027 (ending June 2027) earnings has increased 1.3%.

Published in