Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. But finding a growth stock that can live up to its true potential can be a tough task.In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.However, the Zacks Growth Style Score (part of the Zacks Style S ...

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores serve as complementary indicators to the Zacks Rank, helping investors select stocks with high potential for market outperformance [2] Zacks Style Scores Overview - Stocks are rated A, B, C, D, or F based on value, growth, and momentum characteristics, with higher scores indicating better chances of outperforming the market [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - Focuses on identifying undervalued stocks using ratios like P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - Concentrates on a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - Targets stocks with upward or downward trends in price or earnings outlook, utilizing factors like one-week price change and monthly earnings estimate changes [5] VGM Score - Combines all three Style Scores to identify stocks with attractive value, strong growth forecasts, and promising momentum [6] Zacks Rank Integration - The Zacks Rank is a proprietary model based on earnings estimate revisions, with 1 (Strong Buy) stocks achieving an average annual return of +23.86% since 1988, significantly outperforming the S&P 500 [7] - There are over 800 top-rated stocks available, making it essential to use Style Scores to narrow down choices [8] Stock Selection Strategy - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] - Stocks with lower ranks, even with good Style Scores, may still face downward price trends [10] Company Spotlight: Nordson Corporation - Nordson Corporation, based in Westlake, OH, is a leading manufacturer and distributor of products for dispensing and controlling various fluids [11] - It holds a Zacks Rank of 2 (Buy) and a VGM Score of B, making it a strong candidate for growth investors [11] - Forecasts indicate a year-over-year earnings growth of 10.6% for the current fiscal year, with upward revisions in earnings estimates [12]

Financial Performance - Consolidated sales for the three months ended January 31, 2026, were $669,461,000, representing an 8.8% increase from $615,420,000 in the same period of 2025 [82]. - Gross margin improved slightly to 54.7% for the three months ended January 31, 2026, compared to 54.6% in the prior year [85]. - Net income increased by 40.9% to $133,382,000, or $2.38 per diluted share, up from $94,652,000, or $1.65 per diluted share, in the same period of 2025 [90]. - Operating profit rose by 18.1% to $166,405,000 for the three months ended January 31, 2026, compared to $140,947,000 in the prior year [82]. - Segment EBITDA for the Medical and Fluid Solutions segment increased by 3.1% to $70,206,000, driven by favorable mix and strong organic sales growth [86]. Regional Performance - The Asia Pacific region saw a significant organic sales increase of 23.2%, contributing to total sales growth [84]. Cash Flow and Liquidity - Cash and cash equivalents increased by $11,950,000 during the three months ended January 31, 2026 [91]. - The company maintained a strong liquidity position with $120,392,000 in cash on hand and $945,420,000 in available borrowings as of January 31, 2026 [94]. - The company repurchased $86,001,000 in common shares and paid $45,786,000 in dividends during the same period [91]. - Interest expense decreased to $22,741,000 for the three months ended January 31, 2026, down from $25,618,000 in the comparable period of 2025 [88]. Forward-Looking Statements - The company acknowledges the presence of forward-looking statements that may involve risks and uncertainties, including economic and political conditions, market conditions, and potential acquisitions [95]. - Actual results may differ significantly from expected results due to various factors, and readers are cautioned against placing undue reliance on forward-looking statements [96]. - The company has disclosed information regarding financial instruments sensitive to interest rates and foreign currency exchange rates, which has not changed materially since the last report [98].

Key Takeaways Nordson's Q1 fiscal 2026 EPS rose 15% to $2.37, beating estimates as revenues grew 8.8% year over year.NDSN's Advanced Technology Solutions sales jumped 23.1%, with organic growth of 20.7% in the quarter.Nordson raised fiscal 2026 guidance, projecting sales of $2.86-$2.96B and EPS of $11-$11.60.Nordson Corporation’s (NDSN) first-quarter fiscal 2026 (ended Jan. 31, 2026) adjusted earnings of $2.37 per share surpassed the Zacks Consensus Estimate of $2.36. The bottom line increased 15% year over ...

Financial Data and Key Metrics Changes - The company achieved record first-quarter sales of $669 million, a 9% increase from $615 million in the prior year, with 7% organic growth [5][7] - Adjusted operating profit rose 10% year-over-year to $166 million, while EBITDA increased by 8% to a record $203 million, maintaining EBITDA margins at 30% [8][10] - Free cash flow was $123 million, with a cash flow conversion rate exceeding 100% of net income [6][15] Business Line Data and Key Metrics Changes - **Industrial Precision Solutions (IPS)**: Sales of $327 million, up 9% year-over-year, with organic sales increasing by 3% [11] - **Medical and Fluid Solutions (MFS)**: Sales of $193 million, relatively flat year-over-year, with organic sales up 3% but impacted by a 4% decline from divested medical contract manufacturing [12] - **Advanced Technology Solutions (ATS)**: Sales increased by 23% to $149 million, with a 21% organic sales increase driven by semiconductor applications [14] Market Data and Key Metrics Changes - Strong demand was noted in Asia across most end markets, particularly in the semiconductor space, contributing to overall organic growth [7][11] - The company reported a 4% favorable currency translation impact on sales, although this was partially offset by a small divestiture [7][8] Company Strategy and Development Direction - The company is focused on maintaining strong EBITDA margins while strategically deploying capital for growth, including share repurchases and dividends [6][16] - Investments in semiconductor applications are a key growth driver, with the ATS segment accounting for approximately 50% of revenue [19][21] - The company is actively pursuing acquisitions in medical components, test and inspection opportunities, and core technology enhancements [61][62] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about end market demand trends and noted a balanced approach to potential recovery in select markets [17][18] - The second quarter sales forecast is between $710 million and $740 million, with adjusted earnings projected at $2.70 to $2.90 per diluted share [21][22] - Full-year sales guidance has been increased to a range of $2.86 billion to $2.98 billion, reflecting a 4.5% increase at the midpoint [22] Other Important Information - The company maintained a leverage ratio of 2.1x, consistent with year-end results, allowing for strategic capital deployment [15][16] - The impact of winter storms in January was estimated to have a 1% negative effect on sales, particularly in the medical supply chain [12][58] Q&A Session Summary Question: Margin dynamics and geographic mix - Management indicated that mix challenges primarily affected the IPS segment, but overall margin outlook remains unchanged [28][29] Question: Slow start in medical segment - Management noted strong underlying demand and confidence in mid-single-digit growth despite a slower start due to weather impacts [31][36] Question: ATS segment performance - Strong momentum in dispense businesses was highlighted, with X-ray business beginning to recover [42][45] Question: M&A activity and market conditions - The company is actively pursuing acquisitions, focusing on medical components and test and inspection opportunities, while remaining disciplined in financial criteria [61][62] Question: DRAM pricing impact - Management stated that exposure to DRAM pricing is minimal, but capacity additions in the memory space could present opportunities [97][98]

Financial Data and Key Metrics Changes - The company achieved record first-quarter sales of $669 million, a 9% increase from $615 million in the prior year, with 7% organic growth [5][8] - Adjusted operating profit rose 10% year-over-year to $166 million, while EBITDA increased by 8% to $203 million, maintaining an EBITDA margin of 30% [9][6] - Free cash flow was $123 million, with a cash flow conversion rate exceeding 100% of net income [7][17] Business Line Data and Key Metrics Changes - **Industrial Precision Solutions (IPS)**: Sales of $327 million, a 9% increase year-over-year, with organic sales up 3% [12] - **Medical and Fluid Solutions (MFS)**: Sales of $193 million, relatively flat compared to the prior year, with organic sales up 3% [13][14] - **Advanced Technology Solutions (ATS)**: Sales increased by 23% to $149 million, with a 21% organic sales increase driven by semiconductor applications [16] Market Data and Key Metrics Changes - Strong demand was noted in Asia across most end markets, particularly in the semiconductor space, contributing to overall organic growth [8][12] - The company reported a favorable currency translation impact of 4% on sales, although this was partially offset by a divestiture [8][9] Company Strategy and Development Direction - The company is focused on maintaining strong EBITDA margins while strategically deploying capital for growth and shareholder returns [18][19] - Investments in semiconductor applications are a key growth driver, with a focus on advanced packaging processes and quality control technologies [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about end market demand trends and noted that while market conditions have improved, vigilance is required for potential downturns [20][24] - The company increased its full-year sales guidance to a range of $2.86 billion to $2.98 billion, reflecting a 4.5% increase at the midpoint [24][25] Other Important Information - The company repurchased $82 million in shares and paid $46 million in dividends during the quarter [18] - The balance sheet remains strong, with a leverage ratio of 2.1 times, allowing for continued strategic capital deployment [17] Q&A Session Summary Question: Can you unpack the margin dynamics around systems and geographic mix? - Management indicated that the primary segment facing mix challenges was IPS, but there has been no fundamental change in the margin outlook [30][31] Question: Can you expand on the slow start in medical and the weather impact? - The weather-related impact was estimated at about 1%, with underlying demand remaining strong and a return to mid-single-digit growth expected [36][38] Question: What are the moving pieces in the ATS segment? - Strong momentum was noted in dispense businesses, with X-ray business starting to recover, and overall confidence in ATS segment growth [46][48] Question: How does FX impact margins across segments? - FX had a positive impact on IPS sales, but the incremental benefit was lower, contributing to performance challenges [79][83] Question: What end markets are expected to outperform base case estimates? - Potential upside is anticipated from further inflection in general industrial and automotive demand, as well as ongoing strength in ATS [92][90]

Financial Data and Key Metrics Changes - The company achieved record first quarter sales of $669 million, a 9% increase from the prior year, reflecting 7% overall organic growth [5][7] - Adjusted operating profit increased 10% year-over-year to $166 million, with EBITDA up 8% to a record $203 million, maintaining EBITDA margins at 30% [8][10] - Free cash flow was $123 million, with a cash flow conversion rate exceeding 100% of net income [6][15] Business Line Data and Key Metrics Changes - Industrial Precision Solutions (IPS) sales were $327 million, up 9% year-over-year, with organic sales increasing 3% [11] - Medical and Fluid Solutions (MFS) sales were $193 million, relatively flat year-over-year, with organic sales up 3% [12] - Advanced Technology Solutions (ATS) sales reached $149 million, a 23% increase, driven by strong demand in semiconductor applications [14] Market Data and Key Metrics Changes - Strong demand was noted in Asia across most end markets, particularly in the semiconductor space [7][11] - The company reported favorable currency translation contributing an additional 4% to sales [7] - The winter storms at the end of January impacted production and supply chains, estimated to have a 1% negative impact on sales [13][58] Company Strategy and Development Direction - The company is focused on maintaining strong EBITDA margins while strategically deploying capital for growth and shareholder returns [16][20] - Investments in semiconductor applications are a key growth driver, with approximately 50% of ATS revenue tied to this sector [19] - The company is actively pursuing acquisitions in medical components, test and inspection opportunities, and core industrial technologies [61] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about end market demand trends and expects continued growth in engineered fluid solutions and semiconductor applications [18][20] - The company anticipates second quarter sales in the range of $710 million to $740 million, with adjusted earnings forecasted between $2.70 and $2.90 per diluted share [20][21] - Full-year sales guidance has been increased to a range of $2.86 billion to $2.98 billion, reflecting a 4.5% increase at the midpoint [21][22] Other Important Information - The company repurchased $82 million in shares and paid $46 million in dividends during the quarter [15][16] - The leverage ratio remained consistent at 2.1 times, aligning with long-term targets [15] Q&A Session Summary Question: Can you unpack the margin dynamics around systems and geographic mix? - Management indicated that the primary segment with mix challenges was IPS, but there has been no fundamental change in margin outlook [28] Question: Can you expand on the slow start in medical and what gives confidence for a pickup? - Management noted that the 3% growth was impacted by weather-related issues, but underlying demand remains strong, with expectations for mid-single-digit growth [30][34] Question: What is the outlook for the ATS segment and order trajectory? - Management reported strong momentum in order entry and revenue shipments, particularly in dispense businesses related to semiconductor manufacturing [42][44] Question: How does FX impact margins across segments? - FX had a positive impact on IPS sales, but the incremental performance from FX movements is lower, contributing to the performance in the quarter [76][80] Question: What end markets are expected to outperform base case estimates? - Management highlighted potential upside from further inflection in industrial and automotive demand, as well as strong performance in ATS [85][89]

Under the Private Securities Litigation Reform Act of 1995 Certain statements contained in this release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by terminology such as "may," "will," "should," "could," "expects," "anticipates," "believes," "projects," "forecasts," "outlook," "guidance," "continue," "target," or the negative of these terms or comparable terminology. These statements reflect manageme ...

Investor Presentation February 19, 2026 Nasdaq: NDSN Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 Certain statements contained in this release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by terminology such as "may," "will," "should," "could," "expects," "anticipates," "believes," "projects," "forecasts," "outlook," "guidance," "continue," "target," or the negative ...

Core Insights - Nordson reported revenue of $669.46 million for the quarter ended January 2026, reflecting an 8.8% increase year-over-year and a surprise of +2.86% over the Zacks Consensus Estimate of $650.83 million [1] - The company's EPS for the quarter was $2.37, up from $2.06 in the same quarter last year, with an EPS surprise of +0.53% compared to the consensus estimate of $2.36 [1] Financial Performance Metrics - Net Sales for Industrial Precision Solutions reached $326.86 million, exceeding the average estimate of $308.5 million by two analysts, representing an 8.8% year-over-year increase [4] - Net Sales for Advanced Technology Solutions were reported at $149.42 million, surpassing the estimated $138 million by two analysts, showing a significant year-over-year increase of 23.1% [4] - Net Sales for Medical and Fluid Solutions amounted to $193.18 million, slightly below the average estimate of $204 million, indicating a minor year-over-year decline of 0.2% [4] Stock Performance - Over the past month, Nordson's shares have returned +11.6%, contrasting with a -1.3% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]