Dover Corp.'s (DOV - Free Report) arm Unified Brands has launched a product series in the Power Soak line-up that will help drive the company's food retail business. The product chain will assist Dover’s customers to improve operational efficiency and product quality, as well as reduce labor costs.
Unified Brands, a leading provider of professional food-equipment, engages in designing, manufacturing and providing smart solutions for commercial kitchens. With innovative Power Soak commercial ware washing systems, Unified Brands provides reliable cleaning and sanitizing of pots, pans, and utensils for foodservice operations.
Notably, Power Soak is a continued motion pot, pan and sheet-pan washing system, available in four standard-length models, which are preferably used by the industry's top chains, institutions and retail operations. Power Soak also offers advanced and unlimited product platforms with lower-cost solution, as well as reduces water and energy consumption.
Thus, the introduction of Power Soak will help drive Dover’s ailing Refrigeration & Food Equipment segment’s performance. The segment’s revenues declined year over year in first- and second-quarter 2018, primarily due to lackluster retail refrigeration markets.
In addition, the segment has been affected by weak capital spending and deferred remodel programs with key U.S. retail refrigeration customers, as well as certain product line exits.
Over the past year, Dover has underperformed the industry with respect to price performance mainly due to disappointing demand conditions in retail refrigeration. The stock has lost around 12%, while the industry has recorded growth of 2% during the same time frame.
Nonetheless, Dover acquired two businesses in separate transactions in first-half 2018 to complement and expand upon its existing operations within the Fluids and Refrigeration & Food Equipment segments. The company also remains focused on new product development and inorganic investment in core business platforms.
Zacks Rank & Other Stocks to Consider
Dover carries a Zacks Rank #2 (Buy), currently.
Some other similarly-ranked stocks in the sector include Flowserve Corp. (FLS - Free Report) , AptarGroup, Inc. (ATR - Free Report) and Tenaris S.A. (TS - Free Report) . You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Flowserve has a long-term earnings growth rate of 17.3%. The stock has appreciated 16% in a year’s time.
AptarGroup has a long-term earnings growth rate of 8.5%. Its shares have improved 16% over the past year.
Tenaris has a long-term earnings growth rate of 38.3%. The company’s shares have gained 25% during the past year.
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