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Dover Corporation (DOV), an industrial conglomerate with a market cap of $25.9 billion, operates across multiple sectors, including engineered products, clean energy, imaging, and climate technologies. Based in Downers Grove, Illinois, the company provides a diverse array of equipment, components, and solutions for various global markets.
Companies valued at $10 billion or more are generally considered “large-cap” stocks, and Dover fits this criterion perfectly. Dover is renowned for its broad and innovative range of specialized industrial products and solutions across multiple sectors, including its advanced technologies in fluid handling, waste management systems, and precision marking and coding equipment.
However, the industrial products manufacturer and solutions provider pulled back 2.1% from its 52-week high of $192.31, achieved in July. Over the past three months, shares of Dover have risen 5.1%, underperforming The Industrial Select Sector SPDR Fund’s (XLI) 7.7% gain during the same timeframe.
Nevertheless, over the longer term, DOV stock is up 22.5% on a YTD basis, overshadowing XLI’s 15.8% gains. Moreover, shares of Dover have gained 30.4% over the past 52 weeks, compared to XLI’s 25.7% gains over the same time frame.
Since December last year, DOV has maintained a position consistently above its 200-day moving average. Plus, the stock has mostly stayed above its 50-day moving average during this period despite some recent fluctuations, signaling a bullish trend.
Dover has outperformed over the past year primarily due to strong increases in order intake across its segments and improved booking numbers. Moreover, the stock surged 5.7% on Jul. 25 after the company reported better-than-expected Q2 adjusted EPS of $2.36, driven by sustained demand for its engineered products and a rise in sales from its Engineered Products unit. Additionally, the announcement of a $2 billion sale of its environmental solutions unit to Terex Corp (TEX) further boosted investor confidence.
But, in comparison, DOV lagged behind its rival Applied Industrial Technologies, Inc. (AIT), which has gained nearly 36% over the past 52 weeks and a 23.6% rise on a YTD basis.
Despite the stock’s impressive price action over the past year, analysts are cautiously optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 12 analysts covering the stock, and the mean price target of $202.58 suggests a premium of only 7.6% to current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
