Nordson Corporation (NDSN), based in Westlake, Ohio, manufactures and markets products and systems to dispense, apply, and control adhesives, coatings, polymers, and other fluids worldwide. With a market cap of $14.8 billion, it operates through Industrial Precision Solutions, Medical and Fluid Solutions, and Advanced Technology Solutions segments

The elevator manufacturer has underperformed the broader market over the past year. Over the past 52 weeks, NDSN gained 12.2%, lagging behind the S&P 500 Index’s ($SPX) 32.6% returns. In 2024, NDSN is down 1.2% compared to SPX’s 26.5 gains on a YTD basis.

Narrowing the focus, NDSN has also struggled to keep up with the Industrial Select Sector SPDR Fund’s (XLI) 36% returns over the past 52 weeks and 26.3% gains on a YTD basis.

Nordson Corporation's stock climbed 3.3% on Aug. 21, following its stronger-than-expected Q3 earnings report. Sales increased 2% year-over-year to $661.6 million, primarily fueled by inorganic growth, while organic sales dipped about 1% due to weaker demand in electronics and medical product lines. Despite exceeding analysts' adjusted earnings expectations, the company's GAAP net income fell 8.3% year-over-year to $117.3 million.

For the fiscal year, which ended in October, analysts expect NDSN to report an EPS growth of 5.8% annually to $9.55. Moreover, the company’s earnings surprise history is solid. It beat the consensus estimates in each of the last four quarters.

Among the eight analysts covering the NDSN stock, the consensus rating is a “Moderate Buy.” That’s based on three “Strong Buy” ratings and five “Holds.”

This configuration has been consistent over the past months. 

On Aug. 23, Baird Capital raised its price target for Nordson to $287 from $272, maintaining an “Outperform” rating after strong third-quarter results. The quarter exceeded expectations, driven by robust margins and Advanced Technology Solutions (ATS) revenue growth. 

NDSN’s mean price target of $277.20 represents a premium of 6.2% from current price levels. The street-high target of $295 indicates a potential upside of 13%.