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With a market cap of $25.9 billion, Dover Corporation (DOV) is a global industrial conglomerate producing diverse specialized industrial products and manufacturing equipment. Based in Downers Grove, Illinois, Dover combines global scale with operational flexibility to lead the markets it serves.
Companies valued at $10 billion or more are generally considered “large-cap” stocks, and Dover fits this criterion perfectly. Its strong presence in various industries delivers innovative equipment, components, consumables, software solutions, and support services through five key operating segments. These segments include Engineered Products; Clean Energy & Fueling; Imaging & Identification; Pumps & Process Solutions; and Climate & Sustainability.
Despite an 8.6% decline from its 52-week high of $208.26 reached on Nov. 27, shares of this company have declined marginally over the past three months, underperforming the broader S&P 500 Index’s ($SPX) 3.5% return over the same time frame.
In the longer term, DOV stock is up 23.1% on a YTD basis, slightly lagging behind SPX’s 23.9% gain. Moreover, shares of DOV have risen 23.5% over the past 52 weeks, compared to the 24% return of the SPX over the same time frame.
Yet, DOV has been trading above its 50-day and 200-day moving averages since last year, with few fluctuations. However, the stock has recently fallen below its 50-day moving average.
Shares of Dover fell by nearly 4% on Oct. 24 due to a combination of factors. The company reported mixed Q3 results, with revenue of around $2 billion missing analyst expectations, though adjusted EPS of $2.27 surpassed the forecast. Investors were more concerned about Dover lowering its full-year guidance, cutting revenue growth projections to 1%-3%, and reducing adjusted EPS expectations to $8.08-$8.18. Additionally, management highlighted near-term challenges in key areas like polymer processing, beverage can-making, and European heat pumps, which dampened market sentiment despite its strong dividend track record.
In addition, DOV has outpaced its rival, Illinois Tool Works Inc. (ITW), which has experienced a slight rise over the past 52 weeks and a marginal drop on a YTD basis.
Despite DOV’s slight underperformance in 2024, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 14 analysts covering the stock, and the mean price target of $214.43 suggests a premium of 13.3% to its current levels.
