Stock of the Day

May 2, 2022

Dover (DOV)

$179.30
+$2.06 (+1.2%)
Market Cap: $24.58B

About Dover

Dover Corporation provides equipment and components, consumable supplies, aftermarket parts, software and digital solutions, and support services worldwide. The company's Engineered Products segment provides various equipment, component, software, solution, and services that are used in vehicle aftermarket, waste handling, industrial automation, aerospace and defense, industrial winch and hoist, and fluid dispensing end-market. This segment offers manual and power clamp, rotary and linear mechanical indexer, conveyor, pick and place unit, glove port, and manipulator, as well as end-of-arm robotic gripper, slide, and end effector; winches, hoists, bearings, drives, and electric monitoring system; and radio frequency and microwave filters and switches, and signal intelligence solutions. Its Clean Energy & Fueling segment offers component, equipment, and software and service solution enabling safe storage and transport of fuel, cryogenic gases, and hazardous fluids, as well as operation of retail fueling and vehicle wash establishment. The company's Imaging & Identification segment provides precision marking and coding, product traceability equipment, brand protection, and digital textile printing equipment and solution, as well as related consumable, software, and service to packaged and consumer goods, pharmaceutical, manufacturing, fashion and apparel, and other end-market. Its Pumps & Process Solutions segment manufactures specialty pump, connector, flow meter, fluid connecting solution, plastics and polymer processing equipment, and engineered components for rotating and reciprocating machines. The company's Climate & Sustainability Technologies segment manufactures refrigeration system, refrigeration display case, commercial glass refrigerator and freezer door, and brazed plate heat exchanger for industrial heating and cooling, and residential climate control applications. The company was incorporated in 1947 and is headquartered in Downers Grove, Illinois.

Dover Bull Case

Here are some ways that investors could benefit from investing in Dover Co.:

  • The current stock price is around $177.70, which may present a buying opportunity for investors looking for value.
  • Dover Co. reported earnings per share of $2.05, exceeding analysts' expectations, indicating strong financial performance.
  • The company has a solid net margin of approximately 32.95%, suggesting efficient management and profitability.
  • With a return on equity of 21.03%, Dover Co. demonstrates effective use of shareholders' equity to generate profits.
  • Recent institutional investments, including significant increases in stakes by various firms, reflect growing confidence in the company's future prospects.

Dover Bear Case

Investors should be bearish about investing in Dover Co. for these reasons:

  • The company's revenue decreased by about 0.9% compared to the same quarter last year, which may indicate challenges in maintaining growth.
  • Analysts have set a consensus target price of $207.75, suggesting limited upside potential from the current stock price.
  • Some research reports have downgraded the stock's rating, indicating mixed sentiment among analysts regarding its future performance.
  • The stock has experienced volatility, with a beta of 1.28, suggesting it may be more sensitive to market fluctuations.
  • Despite a strong dividend yield of 1.17%, the payout ratio of 12.41% indicates that a significant portion of earnings is retained, which may limit immediate returns for income-focused investors.
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