Tuesday, May 14, 2013

Investopedia: Roper A LIttle Short On Growth, But A Proven Builder Of Value

As much as investors and analysts talk about growth, you'd think that would be the be-all end-all of stock selection. The data tells a different story, though, particularly in the industrial sector. When it comes to industrials, at least the diversified conglomerates, it would seem that margin leverage, improving ROICs, and active capital deployment are what really drive shares over the long term. To that end, Roper (NYSE:ROP) still looks like an interesting stock to watch.
Another Unimpressive Growth Story
The theme for the first quarter of 2013 has been disappointing and dreary industrial earnings reports, and Roper certainly fits that theme. While reported revenue rose 4%, organic revenue was down 3% on an identical decline in volume. That puts Roper behind other conglomerates like ABB (NYSE:ABB) and Danaher (NYSE:DHR), ahead of GE (NYSE:GE) and Illinois Tool Works (NYSE:ITW), and in basically the same boat as companies like Dover (NYSE:DOV) and Honeywell (NYSE:HON).
Please follow the link to continue:
http://www.investopedia.com/stock-analysis/051413/roper-little-short-growth-proven-builder-value-rop-dhr-ge-itw-hon.aspx

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