Here's Why You Should Retain Nordson Stock in Your Portfolio Now

Nordson Corporation NDSN is poised to benefit from strong momentum in the Industrial Precision Solutions segment, driven by the solid demand for its nonwoven and industrial coating product lines. The growing demand for the company's packaging product lines across food and beverage, pharmaceutical and other consumer goods markets is driving the segment’s performance. Sales from this segment increased 6.8% year over year in fiscal 2024 (ended October 2024).Also, stable demand for fluid solutions products, particularly in the biopharma end market, bodes well for the Medical and Fluid Solutions segment. Driven by strength across its businesses, the company expects sales to be in the band of $2.75-$2.87 billion in fiscal 2025 (ending October 2025), implying an increase of 4.5% at the midpoint on a year-over-year basis.The company has been capitalizing on acquisitions by penetrating unexplored markets and expanding its product lines. For instance, 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. Acquired assets boosted total revenues by 4.8% in fiscal 2024.Nordson remains committed to rewarding shareholders through dividend payouts and share buybacks. In fiscal 2024, it paid out dividends of $161.4 million and bought back treasury shares worth $33.3 million. Also, in August 2024, the quarterly dividend was hiked 15% to 78 cents per share.NDSN’s Price PerformanceImage Source: Zacks Investment ResearchIn the past month, shares of this Zacks Rank #3 (Hold) company have gained 5.2% compared with the industry’s 2.2% growth.However, NDSN has been grappling with weakness in the Advanced Technology Solutions segment. Lower demand for the company’s electronics dispense and test & inspection product lines remains a concern. This is reflected in the Advanced Technology Solutions segment’s revenues, which declined 11.6% in fiscal 2024.  Also, supply-chain constraints, particularly in the medical device business, remain a concern for the company.The company has also been dealing with the adverse impacts of rising operating costs and expenses. In the fourth quarter of fiscal 2024, its cost of sales recorded a year-over-year increase of 1.9% due to rising raw material costs. In the same quarter, the company’s selling and administrative expenses rose 12.5% year over year due to rising acquisition costs. This had an adverse impact on Nordson’s operating margin in the fiscal fourth quarter, which declined 170 basis points year over year to 24%.Also, the high debt level remains a concern for Nordson. The company exited fiscal 2024 with a long-term debt of $2.1 billion, reflecting an increase of about 50% sequentially. The significant increase in debt level was primarily attributable to funds raised for acquisitions.Key PicksSome better-ranked companies from the same industry are discussed below.Graham Corporation GHM currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.GHM delivered a trailing four-quarter average earnings surprise of 101.9%. In the past 60 days, the Zacks Consensus Estimate for Graham’s fiscal 2025 (ending March 2025) earnings has been stable.Applied Industrial Technologies, Inc. AIT presently carries a Zacks Rank #2 (Buy). AIT delivered a trailing four-quarter average earnings surprise of 5%.In the past 60 days, the consensus estimate for AIT’s fiscal 2025 (ending June 2025) earnings has inched up 0.1%.Chart Industries GTLS presently carries a Zacks Rank of 2. In the past 60 days, the consensus estimate for GTLS’ 2024 earnings has increased 1.2%.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report Nordson Corporation (NDSN): Free Stock Analysis Report Graham Corporation (GHM): Free Stock Analysis Report Chart Industries, Inc. (GTLS): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks