Is it time to invest in Dover Corp shares after boosting FY2021 guidance?

By: Motiur Rahman
Motiur Rahman
Md Motiur enjoys researching how companies are solving challenges the world will face over the coming decades. In his… read more.
on Oct 19, 2021
  • Dover Corp shares on Tuesday edged higher by 2.54% after announcing its fiscal Q3 results.
  • The company reported its most recent quarterly results before markets opened, beating analyst estimates.
  • Dover also boosted its FY2021 earnings guidance ahead of the consensus Street estimate.

On Tuesday, Dover Corporation (NYSE:DOV) shares advanced by 2.54% after announcing its most recent quarterly results. The company reported its fiscal third-quarter revenue and earnings before the market opened, beating analyst expectations. Dover also boosted its FY2021 earnings forecast ahead of the consensus Street estimate. 

The company posted fiscal Q3 non-GAAP earnings per share of $1.98, beating the average for analyst estimates of $1.85. In addition, its GAAP EPS of $1.81 outperformed the consensus Street estimate by $0.18, while revenue of the quarter by 14.9% to $2.01 billion, $20 million ahead of estimates. 

Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.

Dover shares are now up 38.66% this year and more than 51% over the last 12 months.

Dover’s exciting growth 

From an investment perspective, Dover shares trade at an attractive forward P/E ratio of 20.65, making it an exciting option for value investors. Moreover, analysts expect its earnings per share to grow at an average annual rate of 14.29% over the next five years.

Therefore, the stock could also gain the attention of growth investors, while its forward annual dividend yield of about 1.17% may need to improve before putting DOV on the radar of dividend investors.

Source – TradingView

Technically, Dover Corp shares seem to have recently completed an upward breakout from a descending channel formation. As a result, the stock has rallied above the 100-day moving average, advancing closer to the overbought conditions of the 14-day RSI.

Therefore, investors could target short-term pullbacks at about $166.52, or lower at $161.47. However, if the price continues to advance, it could find resistance at $176.21, or higher at $181.48.

Is it too late to buy?

In summary, although Dover Corp shares still look competitively valued despite Tuesday’s post-earnings rise, the stock has moved closer to overbought conditions, creating an opportunity for a pullback.

Therefore, it may be best to wait for the stock to retest the crucial support zones before betting on Dover’s exciting growth prospects.

Where to buy right now

To invest simply and easily, users need a low-fee broker with a track record of reliability. The following brokers are highly rated, recognised worldwide, and safe to use:

  1. Etoro, trusted by over 13m users worldwide. Register here >
  2. Skilling, simple, easy to use and regulated. Register here >