Why Donaldson (DCI) is a Top Value Stock for the Long-Term

Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence, including daily updates, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores are indicators that assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [2][3] Value Score - The Value Style Score identifies stocks trading below their true value by analyzing ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Style Score focuses on a company's financial health and future outlook, utilizing projected and historical earnings, sales, and cash flow to find stocks with sustainable growth [4] Momentum Score - The Momentum Style Score helps investors capitalize on price trends by assessing one-week price changes and monthly earnings estimate changes [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for stocks with attractive value, strong growth forecasts, and promising momentum [6] Zacks Rank - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] Stock to Watch: Donaldson Company, Inc. (DCI) - Donaldson Company, Inc. is a filtration systems manufacturer based in Bloomington, MN, with a Zacks Rank of 3 (Hold) and a VGM Score of A [12] - The company has a Value Style Score of B, supported by a forward P/E ratio of 19.31, indicating attractive valuation metrics [12] - Six analysts have raised their earnings estimates for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.05 to $3.66 per share, and an average earnings surprise of 2.5% [13]