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Is a Beat in Store for Dover (DOV) this Earnings Season?

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We expect Dover Corporation (DOV - Free Report) to beat on earnings expectations when it reports second-quarter 2017 results, before the opening bell on Jul 20.

Let’s see how things are shaping up prior to this announcement.

Why a Likely Positive Surprise?

Our proven model shows that Dover has the right combination of the two key ingredients to beat on earnings.

Zacks ESP: The Earnings ESP for the stock, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate is pegged at +5.00%. This is a major indicator of a likely positive earnings surprise for the company. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Dover carries a Zacks Rank #3 (Hold). Note that stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating earnings.

The combination of Dover’s Zacks Rank #3 and ESP of +5.00% makes us confident of an earnings beat.

Earnings Surprise History

The company’s earnings surpassed the Zacks Consensus Estimate in the last quarter. Dover beat estimates in three out of the trailing four quarters, with a positive earnings surprise of 1.17%.

Dover Corporation Price and EPS Surprise
 

Dover Corporation Price and EPS Surprise | Dover Corporation Quote

What’s in Store?

Dover is likely to benefit from its acquisition strategy, robust hygienic and pharma markets, and recovery in the North American rig count. In Engineered Systems, the Printing & Identification platform will continue to deliver consistent solid performance, driven by its unique position in the digital textile market and focus on consumables in marking and coding. Further, the industrial platform is likely witness year-over-year increase in organic revenue backed by strong bookings.

Within the Fluids segment, Dover expects the majority of its businesses to remain solid, including retail fueling, hygienic and pharma and other industrial markets. The strong overall growth rate in this segment will mainly be backed by Dover Fueling Solutions, where the U.S. is witnessing steady growth and European markets are improving.

Share Price Performance

In the past one month, Dover outperformed the Zacks categorized Machinery-General sub-industry. Dover’s shares gained nearly 1.5%, while the industry recorded a dip of 0.6%.

Other Stocks to Consider

Here are a few other stocks which you may consider as our model shows that they too have the right combination of elements to post an earnings beat in their upcoming releases:

Avery Dennison Corporation (AVY - Free Report) has an Earnings ESP of +1.68% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Caterpillar Inc. (CAT - Free Report) has an Earnings ESP of +11.67% and a Zacks Rank #2.

Owens-Illinois, Inc. (OI - Free Report) has an Earnings ESP of +4.55% and a Zacks Rank #2.

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