This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Should You Buy It? Take the Over on Dover

At Wednesday's closing price of $44.34, Dover (DOV) shares are down more than 10% after the company delivered better-than-expected third-quarter results Oct. 24.

At current levels, the stock is valued at just 12.3 times expected 2008 earnings of $3.62 a share. This is a 33% discount to the company's historical average valuation, and a 12% discount to the benchmark S&P 500.

Given all these positives, should you buy shares in Dover, or will the stock continue to lag the overall market?

Dover is a conglomerate of more than 40 companies aligned across four divisions. The company's businesses address supply end markets, including technology, energy and machinery. Dover makes everything from printers and circuit boards to aerospace parts, truck winches and drill bits for oil and natural gas exploration.

The industrial manufacturer earned 88 cents a share in the most recent quarter, which was a penny ahead of the consensus analyst estimate. Revenue also grew 15% from the previous year to $1.84 billion, which also came in $10 million higher than expected.

Dover has made a dozen acquisitions over the past year, but organic revenue still grew 3% year over year last quarter, including an impressive 6% in its nontechnology divisions. The company is also a beneficiary of the weaker dollar, generating more than 40% of its revenue outside of the U.S.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,079.95 +49.74 0.28%
S&P 500 2,091.58 +9.70 0.47%
NASDAQ 4,798.9260 +25.4540 0.53%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs