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Nordson (NDSN) Buys Fluortek, Strengthens Product Offerings

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Nordson Corporation (NDSN - Free Report) announced that it acquired Fluortek, Inc. The transaction is in sync with the company’s strategy to strengthen its product offerings in the medical device market. However, the financial terms of the deal were kept under wraps.

Based in Easton, PA, Fluortek specializes in precision plastic extrusion manufacturing and offers custom dimensioned tubing for the medical device market.

Notably, the acquisition will augment Nordson MEDICAL product lines under the company’s Advanced Technology Solutions segment. This will boost Nordson’s capacity of delivering critical components to its customers. Also, the expanded product line will likely enhance its position as a major provider of service solutions for component and device manufacturing capabilities for original equipment manufacturers across the medical industry.

Notably, Nordson's share price increased 1.3% yesterday, eventually closing the trading session at $187.79.

In July 2019, the company acquired Optical Control GmbH, a developer of high speed, fully automatic counting systems, with the help of X-ray technology. Notably, the buyout has been augmenting Nordson Electronic Solutions product lines. This has enabled the company to diversify and expand the range of solutions it offers to its electronics customers.

Zacks Rank, Price Performance and Estimate Trend

The company, with a $10.8-billion market capitalization, currently carries a Zacks Rank #3 (Hold).

Over the past three months, its share price has increased 26.8% against the industry’s decline of 13%.



In the past 60 days, the Zacks Consensus Estimate for the company’s earnings has declined 11.2% to $5.32 for fiscal 2020 (ending October 2020) on four downward estimate revisions against one upward revision. In addition, over the same timeframe, the consensus estimate for fiscal 2021 (ending October 2021) earnings has declined 9% to $6.29 on three downward estimate revisions against none upward.

Stocks to Consider

Some better-ranked stocks from the Zacks Industrial Products sector are Intellicheck, Inc. (IDN - Free Report) , Alcoa Corporation (AA - Free Report) and Broadwind Energy Inc. (BWEN - Free Report) . All the companies currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Intellicheck delivered a positive earnings surprise of 70.24%, on average, in the trailing four quarters.

Alcoa delivered a positive earnings surprise of 12.78%, on average, in the trailing four quarters.

Broadwind delivered a positive earnings surprise of 50.00%, on average, in the trailing four quarters.

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