Are you looking for an under the radar stock to invest in? With the market near all time highs, it is tough to find stocks that aren’t overvalued. But one stock that is a screaming buy right now is Nordson (NASDAQ: NSDN). This stock rarely gets talked about, but it has a very impressive business.
And the future looks incredible for the company as well. They are definitely ahead of the curve when you look out 5-10 years. As a result, this stock is one you should seriously consider adding to your portfolio.
Who Is Nordson?
Nordson is a company that manufactures equipment and products for computer circuit boards, cereal boxes, medical devices, and more. For example, the next time you are at the grocery store, run through the cereal aisle.
See the colorful boxes? Nordson is the company whose equipment made that box. Their technology allows them to use special inks and adhesives to make the boxes and other products.
But they don’t just sell the equipment to businesses. They also sell single use items too. This means replacement parts and ink. In fact, these single use items make up close to 50% of the company’s revenue.
The bottom line is the need for the equipment Nordson manufactures is present and isn’t going away any time soon.
Why I Like Nordson
So what makes Nordson a great company to invest in? For starters, they are running the business at peak performance right now. Recent earnings per share came in at $1.56, beating estimates. Revenues also beat estimates at $553 million and were an increase of 12%. In fact, the company has regularly been seeing revenues rise.
And here is where things get really interesting for this stock. Not only are they doing great now, but they have a solid game plan for the future.
First, they are going to see continued income from their equipment sales as well as single use products like ink. Second, they are growing their footprint in the medical device field. Their play here is with disposable products, which like ink, will be a single use item.
Third, they are involved with computer circuit boards. While this might not sound exciting, remember that just about everything nowadays has a circuit board in it. And as more items are connected to the internet, they too will need circuit boards, and Nordson is there to supply them.
Finally, they are involved in advanced composites. This is a ground breaking technology that is changing manufacturing as we know it. For instance, instead of welding a car together, this technology allows you to assemble a car using fasteners and special adhesives. This makes the production of cars less expensive. It also makes cars lighter and more fuel efficient.
Nordson is a great company that no one is talking about. I can’t remember the last time I heard someone mention this company, yet it is firing on all cylinders and analysts have next year’s profits rising 16%. Add in the fact that the company has raised the dividend for 54 straight years and you have a solid company with an incredible future.
This stock isn’t just a short term play. With the technology they have, the future looks even better for this company. I would be buying shares at this level and more any time there is a pullback in the stock price.
This author has no positions in any stock mentioned and does not plan to open any positions in any stocks mentioned for at least 72 hours after publication of this article.