Nordson Corporation Thanks to the strength of all business areas and value-enhancing acquisitions, NDSN is well positioned for growth. The attractive remuneration for shareholders makes the share even more attractive.

Nordson, based in Westlake, Ohio, is a leading manufacturer and distributor of products and systems for dispensing, applying and controlling adhesives, coatings, polymers, sealants, biomaterials and other fluids. The company’s product line includes single-use components, stand-alone units for small-batch production and microprocessor-based automated systems for high-speed and high-volume production lines.

Let’s take a closer look at the factors that make this company a smart investment choice right now.

Business strength: Strong momentum in the Industrial Precision Solutions segment is supporting Nordson’s performance. Growing demand for nonwoven product lines in the short-life industrial and consumer goods end markets is benefiting the segment. Growing need for packaged goods in the food and beverage, personal care and cosmetics markets is also driving demand for the company’s packaging product lines, which also bodes well for the segment.

Expansion efforts: NDSN is focused on strengthening its expertise through acquisitions. In the third quarter of fiscal 2024 (ended July 2024), the acquired assets increased the company’s total revenue by 4%. In August 2024, Nordson completed the acquisition of Atrion Corporation. The inclusion of Atrion’s three main businesses – Halkey Roberts, Atrion Medical and Quest Medical – will enable Nordson to expand its medical offerings in the infusion and cardiovascular therapy market. Management expects the acquisition, combined with its medical business expertise, to provide significant operational synergies.

In August 2023, the company acquired the ARAG Group and its subsidiaries. Through the acquisition, Nordson expanded its core competencies in precision dispensing technology and was able to penetrate the fast-growing precision agriculture end market. ARAG is part of the Industrial Precision Solutions segment. In addition, Nordson acquired CyberOptics Corporation in November 2022, expanding its semiconductor testing and inspection capabilities.

Nordson currently has a Zacks Rank #2 (Buy). Over the past three months, the stock has gained 10.1% compared to the industry’s growth of 3.7%.

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Rewards for shareholders: NDSN continues to increase value for shareholders through dividend payments and share repurchases. During the first nine months of fiscal 2024, the company paid $116.8 million in dividends, up 4.8% year over year. During the same period, it repurchased $34.1 million worth of shares. In August 2024, the company increased its dividend by 15% to 78 cents per share. This is the 61st consecutive year of dividend increases.

In September 2022, the Company’s Board of Directors authorized the repurchase of up to an additional $500 million of shares in addition to the existing share repurchase authorization. As of the close of the third fiscal quarter, the Company had approximately $0.52 million of the total $1.5 million authorized for share repurchase available.

The story continues

Other stocks to consider

Below we discuss some other top-ranking companies in the same space.

Flowserve Corporation FLS currently has a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

FLS delivered an earnings surprise of 18.2% over the past four quarters, on average. Over the past 60 days, the Zacks Consensus Estimate for Flowserve’s 2024 earnings has moved 3.8% higher.

Crane company CR currently has a Zacks Rank of 2. The company delivered an average earnings surprise of 11.2% over the past four quarters.

Over the past 60 days, the Zacks Consensus Estimate for CR’s earnings in 2024 has moved 2% higher.

Ferguson Enterprises Inc. FERG currently has a Zacks Rank of 2. FERG delivered an average earnings surprise of 2.6% over the last four quarters.

Over the past 60 days, the consensus estimate for Ferguson’s fiscal 2025 earnings remained stable.

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Flowserve Corporation (FLS): Free Stock Analysis Report

Nordson Corporation (NDSN): Free Stock Analysis Report

Crane Company (CR): Free Stock Analysis Report

Ferguson plc (FERG): Free Stock Analysis Report

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