) reached a new 52-week high of $80.75 on Tuesday, Jun 18, 2013.
The new high was primarily driven by the company's decision to
spin off certain part of its communication technologies
businesses. The spin off is expected to enable Dover to focus on
its key growth spaces. Moreover, active acquisition pipeline,
bookings and orders growth also helped the stock move north.
Dover has delivered a robust one-year return of about 48.86% and
year-to-date return of about 23.84%, outperforming the S&P
500. Average volume of shares traded over the last three months
was approximately 1.2 million.
This industrial conglomerate that produces a wide range of
specialized industrial products and manufacturing equipment has
been delivering positive earnings surprises over the past four
quarters with an average surprise of 1.74%. This Zacks Rank #3
(Hold) stock has a market cap of $13.8 billion and a long-term
expected earnings growth rate of 12.5%.
Dover's expansion has been mainly driven by acquisitions. The
company remains committed to its target of achieving annual
organic sales growth of 4% to 6% in the next three years, aided
by acquisition growth of 3% to 5%. In 2012, Dover made
significant addition to its artificial lift portfolio (Production
Control Services) and to the Fluid Solutions platform (Maag Pump
Systems) and refrigeration (Anthony International). The company
expects completed acquisitions to be accretive to its 2013
earnings by 13 cents to 16 cents, largely driven by Anthony.
Dover's decision to spin off certain part of its communication
technologies businesses into a standalone, publicly traded
company - Knowles, will simplify its business profile and enable
it to focus on its key growth spaces - Energy, Fluids,
Refrigeration & Food Equipment and Printing &
Identification. Following the spin-off, Dover's revenue in 2013
on a pro-forma basis is estimated at around $7.4 to $7.6 billion.
Strong 1Q13 Earnings and Order Growth
Dover's first-quarter 2013 adjusted earnings per share increased
9% to $1.10. The rise was driven by a 6% contribution from
acquisitions, offset by organic decline of 1% as well as a minor
impact from foreign exchange.
Dover's total bookings increased 7% year over year to $2.2
billion in the quarter, driven by growth in Engineered Systems,
Communication Technologies and Energy segment bookings. Orders
increased 1.4% from the year-ago quarter and 12.4% sequentially.
We expect the book to bill ratio of 1.09x to boost organic growth
in the second quarter.
Other Stocks to Consider
Other stocks in the sector that are currently performing well and
have a good visibility include
) with a Zacks Rank #1 (Strong Buy), while
Broadwind Energy, Inc.
) carry a Zacks Rank #2 (Buy).
BROADWIND ENRGY (BWEN): Free Stock Analysis
COLFAX CORP (CFX): Free Stock Analysis Report
DOVER CORP (DOV): Free Stock Analysis Report
GRACO INC (GGG): Free Stock Analysis Report
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