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Here's Why Donaldson (DCI) Shares Are Up Over 22% in 6 Months
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Donaldson Company, Inc. (DCI - Free Report) appears in good shape, with its shares rallying 22.6% over the past six months compared with the industry’s 12.7% growth. Donaldson’s strong product portfolio, solid demand and focus on innovation are expected to have driven the stock’s performance.
Image Source: Zacks Investment Research
Let’s look into the factors driving this Zacks Rank #3 (Hold) player.
Catalysts Behind the Price Surge
Growth in aerospace & defense, and aftermarket sales are supporting the company’s Engine Products segment. Accretive pricing policies and robust demand across end markets are aiding the Aftermarket business. Aerospace and defense end markets are driven by strength in new equipment and replacement parts, as the commercial aerospace industry continues to recover from the pandemic-related softness. The Industrial Products segment is benefiting from robust industrial filtration solutions and gas turbine systems' sales.
Donaldson’s acquisition of Purilogics, LLC (June 2022) strengthened its life sciences portfolio by leveraging the acquired entity’s unique product offerings. The acquisition of Solaris Biotechnology (in November 2021) strengthened its presence across several end markets, including food and beverage, biopharma, and other major life sciences. Also, DCI acquired Pearson Arnold Industrial Services in the same month. Acquired assets are strengthening DCI’s top line.
The company’s measures to reward its shareholders through dividend payments and share buybacks are noteworthy. Donaldson paid out dividends worth $110.1 million in fiscal 2022 (ended July 2022) and $28.2 million in the first quarter of fiscal 2023 (ended October 2022). The company repurchased shares worth $170.6 million in fiscal 2022 and $45.7 million in the first quarter of fiscal 2023. The board announced a 4.5% hike in its quarterly dividend rate in May 2022.
Stocks to Consider
Some better-ranked companies from the Industrial Products sector are discussed below:
Image: Bigstock
Here's Why Donaldson (DCI) Shares Are Up Over 22% in 6 Months
Donaldson Company, Inc. (DCI - Free Report) appears in good shape, with its shares rallying 22.6% over the past six months compared with the industry’s 12.7% growth. Donaldson’s strong product portfolio, solid demand and focus on innovation are expected to have driven the stock’s performance.
Image Source: Zacks Investment Research
Let’s look into the factors driving this Zacks Rank #3 (Hold) player.
Catalysts Behind the Price Surge
Growth in aerospace & defense, and aftermarket sales are supporting the company’s Engine Products segment. Accretive pricing policies and robust demand across end markets are aiding the Aftermarket business. Aerospace and defense end markets are driven by strength in new equipment and replacement parts, as the commercial aerospace industry continues to recover from the pandemic-related softness. The Industrial Products segment is benefiting from robust industrial filtration solutions and gas turbine systems' sales.
Donaldson’s acquisition of Purilogics, LLC (June 2022) strengthened its life sciences portfolio by leveraging the acquired entity’s unique product offerings. The acquisition of Solaris Biotechnology (in November 2021) strengthened its presence across several end markets, including food and beverage, biopharma, and other major life sciences. Also, DCI acquired Pearson Arnold Industrial Services in the same month. Acquired assets are strengthening DCI’s top line.
The company’s measures to reward its shareholders through dividend payments and share buybacks are noteworthy. Donaldson paid out dividends worth $110.1 million in fiscal 2022 (ended July 2022) and $28.2 million in the first quarter of fiscal 2023 (ended October 2022). The company repurchased shares worth $170.6 million in fiscal 2022 and $45.7 million in the first quarter of fiscal 2023. The board announced a 4.5% hike in its quarterly dividend rate in May 2022.
Stocks to Consider
Some better-ranked companies from the Industrial Products sector are discussed below:
MRC Global Inc. (MRC - Free Report) presently sports a Zacks Rank #1 (Strong Buy). MRC’s earnings surprise in the last four quarters was 103%, on average. You can see the complete list of today’s Zacks #1 Rank stocks.
In the past 60 days, MRC Global’s earnings estimates have increased 16.2% for 2022. The stock has rallied 15.9% in the past six months.
Xylem Inc. (XYL - Free Report) presently has a Zacks Rank #2 (Buy). XYL’s earnings surprise in the last four quarters was 13.3%, on average.
In the past 60 days, Xylem’s earnings estimates have increased 5% for 2022. The stock has rallied 41.8% in the past six months.
EnerSys (ENS - Free Report) delivered an average four-quarter earnings surprise of 2.1%. ENS presently carries a Zacks Rank of 2.
ENS’ earnings estimates have increased 0.6% for fiscal 2023 in the past 60 days. The stock has gained 25.7% in the past six months.