Nordson Corporation NDSN has been witnessing strength in the Industrial Precision Solutions segment, driven by the solid demand for its packaging and nonwoven product lines. Growing popularity for the fluid solutions product line in the industrial and electronics end markets is aiding the Medical and Fluid Solutions segment’s revenues. The company anticipates to generate sales in the range of $2.665-$2.705 billion in fiscal 2024, implying year-over-year growth of 2.1% at the midpoint.

The company remains focused on acquiring businesses to gain access to new customers, regions and product lines. In August 2024, it acquired Atrion Corporation’s three major businesses,  Halkey Roberts, Atrion Medical and Quest Medical. The buyout will enable NDSN to expand its medical offerings in the infusion and cardiovascular therapies market. 

Also, the ARAG Group buyout in August 2023 expanded its core capabilities in precision dispensing technology. ARAG is part of Nordson’s Industrial Precision Solutions segment. Acquired assets boosted total revenues by 4% in the third quarter of fiscal 2024 (ended July 2024).

Nordson has been focused on rewarding shareholders through dividend payouts and share repurchases. For instance, in the first three quarters of fiscal 2024, it paid out dividends of $116.8 million and bought back shares worth $34.1 million. Also, in August 2024, the company hiked its dividend by 15% to 78 cents per share.

NDSN Stock’s Price Performance

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In the past three months, shares of this Zacks Rank #3 (Hold) company have gained 10% compared with the industry’s 15.4% growth.

However, NDSN has been subject to weakness in the Advanced Technology Solutions and Medical and Fluid Solutions segments. Softness in electronics processing and x-ray and test product lines remains a concern. This is reflected in the Advanced Technology Solutions segment’s results, which declined 10.9% in the fiscal third quarter.  A decrease in demand for interventional solutions and fluid components product lines is ailing the Medical and Fluid Solutions segment. The segment’s revenues declined 2.4% year over year in the fiscal third quarter.

The escalating costs and expenses have also been a major concern for the company. In the fiscal third quarter, its cost of sales recorded a year-over-year increase of 1.5%. Also, in the same period, the company’s selling and administrative expenses increased 2.4% year over year due to high acquisition costs.

Stocks to Consider

Some better-ranked companies from the same space are discussed below:

Kadant Inc. KAI presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It has a trailing four-quarter average earnings surprise of 17.2%. The Zacks Consensus Estimate for KAI’s 2024 earnings has improved 1.8% in the past 60 days.

RBC Bearings Incorporated RBC presently has a Zacks Rank of 2 and a trailing four-quarter earnings surprise of 2.5%, on average. The consensus estimate for RBC’s 2024 earnings has increased 2.4% in the past 60 days.

Generac Holdings GNRC presently carries a Zacks Rank of 2. GNRC delivered a trailing four-quarter earnings surprise of 10.8%, on average. The Zacks Consensus Estimate for Generac Holdings’ 2024 earnings has increased 5.1% in the past 60 days.

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RBC Bearings Incorporated (RBC) : Free Stock Analysis Report

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Generac Holdings Inc. (GNRC) : Free Stock Analysis Report

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