I've said it before, but it bears repeating - quarter by quarter, Dover (NYSE:DOV) builds the case that it's one of the best multi-industrials in North America and arguably underappreciated on its qualities. In addition to a diverse mix of businesses that should be able to outgrow underlying global growth, Dover also has some ongoing margin improvement and inorganic growth opportunities (harnessing the balance sheet to acquire complementary businesses).
Valuation is the hang-up. I think industrials are looking more and more expensive, and the mid-single-digit prospective return I see from Dover is quite a bit lower than my preferred entry point. On the other hand, if you believe that the S&P 500 itself is likely to generate a 6% to 8% long-term return from here, a similar prospective return from a company that I believe is better than the average S&P 500 company is not such a bad setup.
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Dover Delivers Yet Again And Looks Well-Placed To Leverage This Uncertain Recovery
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