Dover (DOV)
has been on a good run so far this year, up about 36% since the start
of the year on a wider rally in industrials, but the performance gap has
narrowed a bit over the three months. Still, Dover got off to a strong
start in the first quarter, but margin leverage and order growth weren’t
all that bulls might hope for, and it remains to be seen whether the
general industrial/discrete manufacturing sectors that account for a lot
of Dover’s revenue base will hold up as 2019 rolls on.
There
aren’t so many bargains left in the multi-industrials now, and I
include Dover in that group. I’ve liked the shares in recent
months/quarters, but the strong move has soaked up the undervaluation
that I saw and I’m still concerned about the level of expectations for
the economy and corporate earnings going into the second half. I like
the healthy results in fluids, product ID, and industrial businesses,
not to mention the longer-term potential from restructuring, but I think
the shares factor that all in now.
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Dover Starts 2019 Right, But Can It Follow Through?
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