Friday, October 18, 2019

A Quarter At A Time, Dover Is Building A Better Reputation

Between some significant portfolio restructuring and a new management time focused on extensive margin improvement efforts, Dover (DOV) has taken some meaningful strides to improve its reputation and perception with investors. With the company continuing to execute well into an industrial slowdown/downturn, quarter by quarter, Dover is building its case as a reliable "GDP-plus" growth story with a few years of positive operating margin leverage to look forward to beyond 2019.

My primary hesitation with Dover, as with many quality industrials, is valuation. I'd rather buy Dover shares in the low $90s (the shares briefly retreated to that level after my last update), as the prospective returns at today's price aren't quite compelling enough. Still, management is quickly building a strong reputation and its diversified end-market exposure should support above-peer performance for at least a little while longer.

Read the full article here:
A Quarter At A Time, Dover Is Building A Better Reputation

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