Dover Corporation DOV shares scaled a new 52-week high of $193.12 on Tuesday before closing the session lower at $192.63. The increase was fueled by the news of Dover’s subsidiary Caldera’s innovative product launch on Sept. 18 and the company's strategic actions.
DOV has a market capitalization of $26.3 billion. The company’s shares have gained 36.8%, outperforming the industry’s growth of 31.8% and the S&P 500 index’s rise of 33.6%.
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What’s Aiding Dover’s Stock Performance?
Solid Booking Levels: Dover’s bookings remain healthy across most of its segments. It recorded positive booking growth consecutively in the last three quarters. The company expects this trend to continue for the remainder of the year. This is being driven by strong demand across the majority of the company’s business and its ability to produce and ship despite several operating challenges.
Orders remain strong in waste handling, and aerospace & defense. Solid new order intake also continues to aid growth.
Solid Strategic Actions: Dover will gain from product digitization, e-commerce, product development and investment in core business platforms. The company is focused on investments in capacity expansions in high-growth businesses and productivity improvements across its portfolio. It continues to execute restructuring programs to better align the costs and operations with current market conditions through targeted facility consolidations, headcount reductions and other measures, which will support the company’s margins.
Backed by a strong second-quarter performance, the company raised its 2024 outlook. It has raised the adjusted EPS view to $9.05-$9.20 for 2024 from $9.00-$9.15. The mid-point of the updated guidance indicates 4% growth from the $8.80 reported in 2023. The company anticipates year-over-year revenue growth of 3-4%, modified from the previously announced 2-4%.
New Product Launches: On Sept. 18, the company announced that its subsidiary Caldera has launched a groundbreaking Direct-to-Film ("DTF") technology that simplifies digital textile printing for businesses and creators. By incorporating DTF into their print capabilities, users will be able to enter new markets and capture new opportunities.
The user-friendly software simplifies image preparation, reducing the need for technical knowledge. Caldera's solution, which is compatible with Windows, MacOS and Linux, optimizes alignments, color bars and knockouts for colorful results.
Strategic Acquisitions & Disinvestment: Dover has a long tradition of making successful acquisitions in diverse end markets.
In August 2024, Dover announced the acquisition of Criteria Labs, Inc., which would be integrated into DOV's Microwave Products Group (“MPG”) within the Engineered Products segment. This move will enable MPG to develop more compact and lightweight designs while maintaining performance and durability.
The company sold its De-Sta-Co (“DESTACO”) business to the industrial and automotive supplier Stabilus SE in April 2024. In October 2023, Dover inked a deal with Stabilus to sell its DESTACO business for $680 million in enterprise value. On July 22, 2024, Dover and Terex TEX announced that they had inked a deal, per which Terex would acquire Dover’s ESG Group in a $2-billion all-cash transaction. These moves will help DOV focus its efforts and capital deployment on growing its core platforms.
DOV’s Zacks Rank & Other Stocks to Consider
Dover currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the Industrial Products sector are Crane Company CR and Flowserve Corporation FLS. These companies have a Zacks Rank #2 at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Crane’s 2024 earnings is pegged at $5.07 per share. The consensus estimate for 2024 earnings has moved north by 6% in the past 60 days. The company has a trailing four-quarter average earnings surprise of 11.2%. CR shares have gained 84% in a year.
Flowserve has an average trailing four-quarter earnings surprise of 18.2%. The Zacks Consensus Estimate for FLS’ 2024 earnings is pinned at $2.76 per share, which indicates year-over-year growth of 31.6%. The consensus estimate for 2024 earnings has moved north by 4% in the past 60 days. The company’s shares have gained 34.7% in a year.
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