Nordson Story

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NDSN -- USA Stock  

USD 195.31  2.22  1.12%

Nordson is scheduled to announce its earnings today. The next earnings report is expected on the 9th of December 2020. As some millenniums are still trying to avoid industrials space, I will try to outline Nordson a little further in order to understand its potential as a viable investment. What exactly are Nordson shareholders getting in September?
Published over three months ago
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What is September outlook for Nordson (NASDAQ:NDSN)?
On a scale of 0 to 100, Nordson holds a performance score of 10. The company secures a Beta (Market Risk) of 0.7954, which conveys possible diversification benefits within a given portfolio. Let's try to break down what Nordson's beta means in this case. As returns on the market increase, Nordson returns are expected to increase less than the market. However, during the bear market, the loss on holding Nordson will be expected to be smaller as well. Although it is vital to follow Nordson price patterns, it is good to be conservative about what you can do with the information regarding equity historical price patterns. The philosophy towards estimating future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing Nordson technical indicators, you can presently evaluate if the expected return of 0.27% will be sustainable into the future. Please exercises Nordson potential upside, as well as the relationship between the kurtosis and day typical price to make a quick decision on whether Nordson current price movements will revert.
What is the right price you would pay to acquire a share of Nordson? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our stock advisor page.

What is happening with Nordson this year

Annual and quarterly reports issued by Nordson are formal financial statements that are published yearly and quarterly and sent to Nordson stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the Securities and Exchange Commission (SEC) for businesses owned by the public since 1934. Companies such as Nordson often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.

How Nordson utilizes its cash?

To perform a cash flow analysis of Nordson, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Nordson is receiving and how much cash it distributes out in a given period. The Nordson cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Nordson Net Cash Flow from Operations is quite stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at 408.83 Million

Nordson exotic insider transaction detected

Legal trades by Nordson insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Nordson insider trading alert for general transaction of employee stock options (right to buy) by Gina Beredo, Exec. VP Gen. Counsel & Sec., on 2nd of December 2020. This event was filed by Nordson Corp with SEC on 2020-12-02. Statement of changes in beneficial ownership - SEC Form 4. Gina Beredo currently serves as vice president general counsel and secretary of Nordson [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Another Deeper Perspective

Earning per share calculations of Nordson is based on official Zacks consensus of 4 analysts regarding Nordson's future annual earnings. Given the historical accuracy of 97.48%, the future earnings per share of the company is estimated to be 5.41 with the lowest and highest values of 5.29 and 5.55, respectively. Please note that this consensus of annual earnings estimates for the firm is an estimate of EPS before non-recurring items and including employee stock options expenses.

Is Nordson a risky opportunity?

Let's check the volatility. Nordson is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Nordson (NASDAQ:NDSN) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. picking up a share of a Nordson stock makes you a part-owner of that company.

Nordson Current Consensus

Here is the latest trade recommendation based on an ongoing consensus estimate among financial analysis covering Nordson. The Nordson consensus assessment is calculated by taking the average estimates from all of the analysts covering Nordson

Strong Buy
Strong Buy562.5
Strong Sell00.0

Nordson has 89 percent chance to finish below $202 next week

The mean deviation is down to 1.49 as of today. Nordson has relatively low volatility with skewness of 0.44 and kurtosis of 1.12. However, we advise all investors to independently investigate Nordson to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Conclusion on Nordson

Whereas some other firms under the specialty industrial machinery industry are still a bit expensive, Nordson may offer a potential longer-term growth to institutional investors. With an optimistic outlook on your 30 days horizon, it may be a good time to buy new shares of Nordson or increase your existing holdings in the Stock as it seems the potential growth has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Nordson.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Nordson. Please refer to our Terms of Use for any information regarding our disclosure principles.

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