Nordson Stock: Is NDSN Outperforming the Industrial Sector?

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4 days ago

With a market cap of $12 billion, Nordson Corporation (NDSN) engineers, manufactures, and markets products and systems to dispense, apply, and control adhesives, coatings, polymers, sealants, biomaterials, and other fluids. The Westlake, Ohio-based company operates through three segments: Industrial Precision Solutions, Medical and Fluid Solutions, and Advanced Technology Solutions.
Companies valued at $10 billion or more are generally classified as 'large-cap' stocks, and Nordson fits this description perfectly. The company's products are widely used in industries such as electronics, medical, packaging, and automotive for applying adhesives, coatings, sealants, and biomaterials. It emphasizes high-performance engineering and a diversified industrial base.
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Shares of Nordson have dipped 20.2% from its 52-week high of $266.86. NDSN stock has risen 4.5% over the past three months, underperforming the Industrial Select Sector SPDR Fund's (XLI) 8.8% increase.
In the long term, NDSN stock has gained 1.8% on a YTD basis, whereas XLI has returned 9.2%. In addition, over the past 52 weeks, shares of Nordson have dropped 7.9%, lagging behind XLI's 17% return.
The stock has remained below its 50-day and 200-day moving averages since mid-December last year. Yet, it has risen above its 50-day moving average since early May.
Nordson's stock surged 6.8% following the release of its Q2 2025 results on May 28. Quarterly sales rose 5% year-over-year to $683 million, surpassing Wall Street expectations, primarily driven by an 8% contribution from the Atrion acquisition. The company delivered strong adjusted EBITDA of $217.2 million, with a robust margin of 32%, reflecting continued operational excellence and gains from acquisitions. Meanwhile, adjusted EPS increased 3.4% from the prior-year quarter to $2.42, beating the consensus estimate.
Compared to its peer, Ingersoll Rand Inc. (IR) has lagged behind NDSN stock. IR stock has dropped 9.4% on a YTD basis and 11.8% over the past 52 weeks.
Although the stock has underperformed the sector over the past year, analysts are moderately optimistic about its stock's prospects. NDSN stock has a consensus rating of 'Moderate Buy' from the 10 analysts covering the stock, and as of writing, it is trading below the mean price target of $248.44.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com