Trade-Ideas LLC identified Nordson ( NDSN) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Nordson as such a stock due to the following factors:

  • NDSN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $24.5 million.
  • NDSN has traded 384,796 shares today.
  • NDSN is up 3% today.
  • NDSN was down 12.2% yesterday.

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More details on NDSN:

Nordson Corporation engineers, manufactures, and markets products and systems for dispensing, applying, and controlling adhesives, coatings, polymers, sealants, biomaterials, and other fluids. The stock currently has a dividend yield of 1.4%. NDSN has a PE ratio of 19. Currently there are 3 analysts that rate Nordson a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Nordson has been 197,600 shares per day over the past 30 days. Nordson has a market cap of $4.5 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.36 and a short float of 2.9% with 4.69 days to cover. Shares are down 19.9% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Nordson as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 15.4%. Since the same quarter one year prior, revenues slightly increased by 0.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Machinery industry and the overall market, NORDSON CORP's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
  • Even though the current debt-to-equity ratio is 1.14, it is still below the industry average, suggesting that this level of debt is acceptable within the Machinery industry. Despite the fact that NDSN's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.68 is high and demonstrates strong liquidity.
  • NORDSON CORP's earnings per share declined by 5.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, NORDSON CORP increased its bottom line by earning $3.84 versus $3.42 in the prior year. This year, the market expects an improvement in earnings ($3.96 versus $3.84).
  • The gross profit margin for NORDSON CORP is rather high; currently it is at 57.34%. Regardless of NDSN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, NDSN's net profit margin of 14.99% compares favorably to the industry average.

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