Nordson Corporation (NASDAQ:NDSN) stands to gain from its businesses, acquired assets, and capital-deployment strategy.
Currently ranked #2 (Buy), this company has a market capitalization of $11.7 billion.
Here are the factors that make investing in Nordson Corporation (NASDAQ:NDSN) a smart move right now.
Nordson Corporation’s Unique Strength
Nordson’s (NASDAQ:NDSN) presence in diverse markets allows it to mitigate risks associated with a single market. This company has a well-diversified business structure, product launches, and a large customer base in a variety of industries, including medical, appliances, packaging, electronics, aerospace, energy, chemicals, defense, rigid containers, and others.
This means that investing in Nordson Corporation (NASDAQ:NDSN) could be similar to diversifying your portfolio, except it represents a one-stop-shop opportunity. You spare yourself from searching for all the right stocks across different thriving industries.
With robust demand across its industrial, electronics, and medical end markets, Nordson (NASDAQ:NDSN) will likely gain momentum in the quarters ahead regardless of market conditions.
As a result, Nordson Corporation (NASDAQ:NDSN) expects adjusted earnings per share of $2.40-$2.45, while revenues are expected to be $640-$655 million In the third quarter of fiscal 2022 (ending July 2022). These projected results are impressive, which is why now may be the perfect time to seriously consider Nordson (NASDAQ:NDSN).
Nordson’s (NDSN) Rapid Growth Across Different Industries
One of the ways Nordson Corporation (NASDAQ:NDSN) quickly grows its strength across different industries is through aggressive acquisitions. This has proven true between 2020 and 2021.
For example, in November 2021, Nordson (NASDAQ:NDSN) acquired NDC Technologies from Spectris plc, one of the leading providers of precision measurement solutions for in-line manufacturing process control.
With this acquisition, the company’s test and inspection platform will expand into new end markets and adjacent technologies while strengthening its position in the electronics market.
Additionally, Nordson Corporation (NASDAQ:NDSN) has also acquired vivaMOS Ltd., which designs, develops, and manufactures complementary metal-oxide-semiconductor (CMOS) image sensors for a huge range of X-ray applications in September 2020. As part of its strategic objective, Nordson expects this acquisition to enhance its test and inspection capabilities for a variety of end markets.
As of June 2020, Nordson Corporation (NASDAQ:NDSN) acquired Fluortek, Inc., an Easton, Pennsylvania-based manufacturer of precision plastic extrusions for medical devices.
“As Nordson MEDICAL continues to expand its differentiated product offerings, the acquisition of Fluortek enhances our ability to deliver critical components that enable our customers’ most complex medical device innovations,” said Jeffrey Pembroke Executive VP, Nordson Advanced Technology Solutions. “This offering further supports Nordson MEDICAL’s position as a leading full-service solution provider of component and device manufacturing capabilities for OEM’s across the interventional, minimally invasive and surgical medical device landscape.”
With this acquisition, Fluortek will become part of Nordson’s Advanced Technology Solutions segment’s MEDICAL product line. The acquisition contributes to Nordson MEDICAL’s strategic objective of expanding its medical device product offerings.
Why Should Shareholders Care?
Nordson Corporation (NASDAQ:NDSN) plans to reward its shareholders through dividends and share buybacks are encouraging. The company distributed dividends of $59.3 million and repurchased shares worth $140.5 million in the first six months of fiscal 2022. Also, NDSN raised its quarterly dividend by 31% to 51 cents in August 2021. Moreover, Nordson had $253.8 million worth of shares available for repurchase at the end of the second quarter of fiscal 2022.
About Nordson Corporation
Nordson Corporation engineers, manufactures, and markets differentiated products and systems that are used for dispensing and processing adhesives, coatings, polymers, sealants and biomaterials; and for managing fluids, testing and inspecting for quality, treating surfaces and curing. Nordson serves a wide variety of consumer non-durable, consumer durable and technology end markets, including packaging, nonwovens, electronics, medical, appliances, energy, transportation, building and construction, and general product assembly and finishing.
Featured Image:
