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Nordson Corporation (NDSN) is a leading manufacturer and distributor in the industrial machinery sector and boasts a market cap of $14.8 billion. The Westlake, Ohio-based company specializes in the engineering and production of systems designed to dispense, apply, and control adhesives, coatings, and various fluids across multiple industries worldwide.
Companies valued at $10 billion or more are generally considered “large-cap” stocks, and Nordson fits this criterion perfectly, exceeding the mark. Nordson's uniqueness in the market lies in its comprehensive range of advanced dispensing and inspection systems that integrate cutting-edge technologies for precision and efficiency, catering to both industrial and medical applications.
However, the adhesives and industrial coatings maker has slipped 7.7% from its 52-week high of $279.38, achieved in May. Shares of Nordson are up 11% over the past three months, outperforming the broader S&P 500 Index's ($SPX) 5.2% gains over the same time frame.
Longer term, NDSN is down 2.4% on a YTD basis, lagging behind SPX's 20.2% gains. Moreover, shares of Nordson have surged 15.1% over the past 52 weeks, underperforming SPX's 32.7% returns over the same time frame.
Yet, NDSN has been trading above its 50-day moving average since late July and has remained above its 200-day moving average since mid-September.
Shares of Nordson rose 3.3% following its better-than-expected Q3 earnings of $2.41 per share and revenue of $661.6 million on Aug. 21 due to the company's strong performance in the Industrial Precision Solutions segment. Additionally, the positive guidance for fiscal 2024, raising projected adjusted earnings and sales ranges, bolstered investor confidence amid the announcement of its strategic acquisition of Atrion Corporation.
Nevertheless, the stock’s rival IDEX Corporation (IEX) is underperforming – not just NDSN but the broader equity benchmarks. Shares of IDEX have risen 2.6% over the past 52 weeks and are down 2.1% on a YTD basis.
Despite the stock’s underperformance relative to SPX over the past year, analysts are moderately optimistic about NDSN’s prospects. The stock has a consensus rating of “Moderate Buy” from the eight analysts in coverage, and the mean price target of $275.80 is a premium of just 6.9% to current levels.
On the date of publication, Sohini Mondal 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.
