/Nordson%20Corp_%20logo%20on%20phone-by%20Piotr%20Swat%20via%20Shutterstock.jpg)
Westlake, Ohio-based Nordson Corporation (NDSN) manufactures and markets products and systems to dispense, apply, and control adhesives, coatings, polymers, and other fluids worldwide. With a market cap of $12.1 billion, Nordson operates through Industrial Precision Solutions, Medical and Fluid Solutions, and Advanced Technology Solutions segments.
Companies worth $10 billion or more are generally described as "large-cap stocks," Nordson fits right into that category, with its market cap exceeding this threshold, reflecting its notable size and influence in the specialty industrial machinery industry.
Nordson stock has tanked nearly 23.7% from its all-time high of $279.38 touched on May. 10. Furthermore, NDSN has plummeted 18.3% over the past three months, substantially underperforming the Nasdaq Composite’s ($NASX) 10.1% gains during the same time frame.
Over the longer term, Nordson’s performance has remained even grimmer. NDSN has plunged 7.2% over the past six months and 19.2% over the past 52 weeks, underperforming NASX’s 12.4% returns over the past six months and 32.8% surge over the past year
To confirm the sharp downturn, Nordson has fallen significantly below its 50-day and 200-day moving average in recent weeks.
Despite beating Wall Street’s earnings and topline expectations, Nordson stock prices declined 8.2% in the trading session after the release of its Q4 results on Dec. 11. The company’s organic sales took a hit during the quarter, but acquisitions and favorable currency translation led to a 3.5% year-over-year increase in overall sales, reaching $744.5 million, exceeding Street expectations by 1.5%. And although its income before taxes declined 7.8% to $148.1 million primarily due to a 12.5% increase in selling, general, and admin expenses to $223.9 million, its adjusted EPS of $2.78 surpassed analysts' estimates by 7.3%.
However, the company's fiscal 2025 full-year sales guidance range of $2.75 billion to $2.87 billion and adjusted EPS guidance range of $9.70 to $10.50 fell significantly short of Wall Street's forecast, unsettling investors' confidence.
Nordson has significantly underperformed its peer Ingersoll Rand Inc.’s (IR) 2.8% gains over the past six months and 19.2% returns over the past year.
Among the eight analysts covering the stock, the consensus rating is a “Moderate Buy.” Its mean price target of $254.17 represents a 19.2% premium to the current price levels.
