Westlake, Ohio-based Nordson Corporation (NDSN) engineers, manufactures, and markets products and systems to dispense, apply, and control adhesives, coatings, polymers, sealants, biomaterials, and other fluids. Valued at $13.2 billion by market cap, the company's products include customized electronic controls for the precise application and curing of materials to meet customers' requirements.
Companies worth $10 billion or more are typically classified as “large-cap stocks,” and NDSN fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the specialty industrial machinery industry. NDSN's strengths include its diversified product lineup and global presence. This international diversification reduces market risk and positions the company to capitalize on global growth opportunities, supported by operations in over 35 countries.
Despite its notable strength, NDSN shares have slipped 6.4% from their 52-week high of $251.47, achieved on Dec. 11. Over the past three months, NDSN stock has gained 5.5%, outperforming the S&P 500 Index’s ($SPX) 3.7% gains during the same time frame.
In the longer term, shares of NDSN rose 8% on a six-month basis and climbed 2.8% over the past 52 weeks, underperforming SPX’s six-month gains of 12.9% and 12.8% returns over the last year.
To confirm the bullish trend, NDSN has been trading above its 200-day moving average since mid-August, with minor fluctuations. The stock is trading above its 50-day moving average since mid-May, with slight fluctuations.
On Dec. 10, NDSN shares closed up more than 1% after reporting its Q4 results. Its adjusted EPS of $3.03 exceeded Wall Street expectations of $2.93. The company’s revenue stood at $751.8 million, up 1% year over year. NDSN expects full-year adjusted EPS in the range of $10.80 to $11.50, and revenue ranging from $2.8 billion to $3 billion.
NDSN’s rival, Graco Inc. (GGG), has lagged behind the stock, with a 1.8% dip on a six-month basis and a 5.7% downtick over the past 52 weeks.
Wall Street analysts are reasonably bullish on NDSN’s prospects. The stock has a consensus “Moderate Buy” rating from the 11 analysts covering it, and the mean price target of $267.11 suggests a potential upside of 13.4% from current price levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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