) reached a new 52-week high of $96.57 on Dec 30. The new high is
based on expected benefits from growth in bookings and orders,
and focus on the oil and gas, plastics and petrochemicals
Illinois-based Dover is a diversified machinery producer with a
market cap of roughly $16.4 billion. The company's shares closed
at $96.38 at the end of trading on Dec 30, with a solid
year-to-date return of about 49.3% and a robust one-year return
of roughly 50.6%, outperforming the S&P 500.
The company's long-term estimated earnings per share growth rate
is 12.5%. Average volume of shares traded over the last three
months is approximately 870K.
What's Driving Dover Up?
Dover reported third-quarter 2013 adjusted earnings of $1.54 per
share, beating the Zacks Consensus Estimate of $1.50 and
exceeding the prior-year quarter's earnings of $1.25 by 23%. The
improvement was due to organic growth across all segments,
strength in the drilling and downstream markets and cost
In Nov 2013, Dover closed its previously announced acquisition of
Italy-based Finder for $145 million. The acquisition will help
Dover strengthen the position of the Pump Solutions Group in the
energy market and enhance its global footprint.
Furthermore, Dover signed a definitive agreement to sell its DEK
Printing Machines unit (DEK) to Hong Kong-listed ASM Pacific
Technology. The sale, which is expected to close by mid-2014, is
likely to generate cash proceeds of $170 million. The deal will
boost Dover's business profile and strengthen its key industrial
Dover's total bookings also increased 9% year over year to $2.2
billion. Dover is expected to continue to benefit from bookings
and orders growth in the upcoming quarters.
Dover currently has a Zacks Rank #3 (Hold).
Other Stocks to Consider
Better-ranked stocks in the same industry are
Barnes Group Inc.
DXP Enterprises, Inc.
). While Barnes Group holds a Zacks Rank #1 (Strong Buy), DXP
Enterprises and Graco carry a Zacks Rank #2 (Buy).
BARNES GRP (B): Free Stock Analysis Report
DOVER CORP (DOV): Free Stock Analysis Report
DXP ENTERPRISES (DXPE): Free Stock Analysis
GRACO INC (GGG): Free Stock Analysis Report
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