Donaldson Company (NYSE:DCI) is one of the 15 best Industrial Machinery and Supplies stocks to buy according to Hedge Funds. On February 2, Baird analyst Robert Mason maintained his Outperform rating on Donaldson Company (NYSE:DCI), and also raised his price target on the stock from $100 to $110. His rating and price target revision came after the company’s announcement of its CEO transition, with current COO Richard Lewis set to replace Tod Carpenter, who is retiring. 5 Biggest Shipping Companies In The ...

Core Viewpoint - Donaldson (DCI) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [4]. Company Performance and Investor Sentiment - The upgrade reflects an improvement in Donaldson's underlying business, suggesting that investors may respond positively by driving the stock price higher [5]. - Over the past three months, the Zacks Consensus Estimate for Donaldson has increased by 0.7%, indicating a positive trend in earnings estimates [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Donaldson's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Core Insights - Parker-Hannifin Corporation (NYSE:PH) announced a significant acquisition of Filtration Group for $9.25 billion, which is expected to enhance its position in the heating and cooling market [2] - The acquisition aligns with the growing demand for data centers and liquid cooling solutions, making Parker-Hannifin a notable player in this sector [2][3] - Jim Cramer highlighted Parker-Hannifin as a "standout stock," emphasizing its strong performance and the impact of data center orders from major contractors [3] Company Overview - Parker-Hannifin Corporation is one of the largest industrial equipment companies globally, specializing in motion control systems, hydraulics, and avionics systems [2] - The company is positioned to benefit from the ongoing construction boom in data centers, which is described as the largest since World War II [3] Market Context - The acquisition of Filtration Group is seen as a strategic move to capitalize on the increasing demand for data center infrastructure, particularly in relation to AI and liquid cooling technologies [2] - Cramer noted that Parker-Hannifin's stock experienced a notable increase of $13 in a single trading session, reflecting positive market sentiment [3]

Core Insights - Cadiz Inc. is positioned for significant growth in 2026 following critical milestones achieved in 2025, marking it as a watershed year for the company [2][7] Financial Performance - Total revenue for Q3 2025 reached $4.0 million, a 42% increase from $2.8 million in Q3 2024 [4] - Year-to-date revenue for ATEC reached $10.1 million, compared to $3.5 million in the same period of 2024, reflecting strong growth [4] - Total company revenue for the nine months ending September 30, 2025, was $11.2 million, up 131% year-over-year [6] - Operating loss for Q3 2025 was $4.9 million, slightly higher than the $4.8 million loss in Q3 2024 [10] - Net loss for Q3 2025 was $7.1 million, compared to $6.8 million in Q3 2024 [10] - Cash used in operations for the first nine months of 2025 was $12 million, down from $15.3 million in the same period of 2024 [10] Project Developments - The Mojave Groundwater Bank Project secured its first tranche of construction financing through a $51 million investment from the Lytton Rancheria of California [4] - ATEC Water Systems has shipped 308 filtration systems year-to-date, more than double the volume achieved in 2024 [3] - A Memorandum of Understanding (MOU) was executed with EPCOR for the purchase and sale of 25,000 AFY of water supply, with capital contributions expected for the Southern Pipeline construction [4] - An MOU with the U.S. Bureau of Reclamation supports the development of the Mojave Groundwater Bank amid ongoing negotiations for water sharing rules in the Colorado River Basin [4] Operational Efficiency - Gross margin in Q3 2025 was approximately 50%, up from 32% in the prior year, indicating improved production efficiencies [4] - Q3 2025 marked the second consecutive quarter of operating profit for ATEC, confirming strong market adoption [5] Future Outlook - Cadiz is well-positioned to unlock long-term recurring cash flows and deliver sustainable shareholder value as it enters the construction phase of major water supply and storage projects [7]

Core Insights - Energy Recovery (ERII) reported quarterly earnings of $0.12 per share, exceeding the Zacks Consensus Estimate of $0.09 per share, but down from $0.21 per share a year ago, indicating an earnings surprise of +33.33% [1] - The company achieved revenues of $32 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 7.51%, although this is a decrease from year-ago revenues of $38.58 million [2] - Energy Recovery shares have increased approximately 11.6% year-to-date, compared to a 15.1% gain in the S&P 500 [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.70 on revenues of $84.83 million, and for the current fiscal year, it is $0.71 on revenues of $149.9 million [7] - The estimate revisions trend for Energy Recovery was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6] Industry Context - The Pollution Control industry, to which Energy Recovery belongs, is currently ranked in the bottom 26% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Another company in the same industry, Donaldson (DCI), is expected to report quarterly earnings of $0.92 per share, reflecting a year-over-year change of +10.8% [9]

Core Insights - Pentair plc is a global leader in water treatment and sustainable fluid management solutions, with a market cap of $18.1 billion [1] - The company is expected to report non-GAAP earnings of $1.18 per share for Q3, reflecting an 8.3% increase from the previous year [2] - Pentair's earnings for the current year are projected to be $4.84 per share, up 11.8% from $4.33 per share reported last year [3] Financial Performance - Pentair's stock has increased by 16% over the past 52 weeks, outperforming the Industrial Select Sector SPDR Fund's 14.8% increase but lagging behind the S&P 500 Index's 17.4% rise [4] - In Q2 2025, the company reported adjusted EPS of $1.39, a 14% year-over-year increase, with net sales rising 2% to $1.123 billion [5] - Management has raised the full-year adjusted EPS guidance to a range of $4.75–$4.85, with projected sales growth of 1%–2% for 2025 [5] Analyst Ratings - The consensus opinion on Pentair is a "Moderate Buy," with 12 "Strong Buys," one "Moderate Buy," six "Holds," and one "Moderate Sell" among 20 analysts [6] - The mean price target for Pentair is $116.28, indicating a 4% upside potential from current price levels [6]

Core Insights - Dividend-paying stocks, especially those with increasing payouts, provide stability during uncertain market conditions and help reduce volatility [2][3] - In 2024, global dividend growth accelerated to 8.5%, with significant contributions from the Asia-Pacific region and record dividend initiations in the US, particularly in the technology, media, and telecommunications sectors [4] Company Summaries 3M Company (NYSE:MMM) - 3M is a diversified technology company serving various industries, including electronics and automotive, with a focus on innovation and restructuring [9][10] - The company has a quarterly dividend of $0.73 per share, reflecting a 4.3% increase, and a dividend yield of 1.86% as of September 20 [11] The Sherwin-Williams Company (NYSE:SHW) - Sherwin-Williams is a leading paints and coatings company with a strong history of dividend payments, supported by a network of over 5,400 stores [12][13] - The company has maintained a conservative payout ratio of 26.6% and has increased its dividends for 46 consecutive years, with a quarterly dividend of $0.79 per share and a yield of 0.91% as of September 20 [14]

Core Insights - Donaldson (DCI) reported quarterly earnings of $1.03 per share, exceeding the Zacks Consensus Estimate of $1.02 per share, and up from $0.94 per share a year ago, representing an earnings surprise of +0.98% [1] - The company posted revenues of $980.7 million for the quarter ended July 2025, surpassing the Zacks Consensus Estimate by 2.82%, and an increase from $935.4 million year-over-year [2] - Donaldson has outperformed the S&P 500, gaining about 12.3% since the beginning of the year compared to the S&P 500's gain of 9.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.93 on revenues of $923.02 million, and for the current fiscal year, it is $3.90 on revenues of $3.78 billion [7] - The estimate revisions trend for Donaldson was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Pollution Control industry, to which Donaldson belongs, is currently ranked in the top 11% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8]

Group 1 - ScanSource reported quarterly earnings of $1.02 per share, exceeding the Zacks Consensus Estimate of $0.91 per share, and up from $0.80 per share a year ago, representing an earnings surprise of +12.09% [1] - The company posted revenues of $812.89 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 5.18%, compared to year-ago revenues of $746.11 million [2] - Over the last four quarters, ScanSource has surpassed consensus EPS estimates three times, but has only topped consensus revenue estimates once [2] Group 2 - The stock has underperformed the market, losing about 10.4% since the beginning of the year, while the S&P 500 has gained 8.7% [3] - The company's earnings outlook, including current consensus earnings expectations for upcoming quarters, will be crucial for investors [4] - The current consensus EPS estimate for the coming quarter is $0.90 on revenues of $778.35 million, and for the current fiscal year, it is $3.68 on revenues of $3.15 billion [7] Group 3 - The Zacks Industry Rank indicates that the Industrial Services sector is currently in the top 19% of over 250 Zacks industries, suggesting a favorable outlook for stocks in this sector [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The estimate revisions trend for ScanSource was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6]

Core Viewpoint - Unifi reported a quarterly loss of $0.56 per share, which was better than the Zacks Consensus Estimate of a loss of $0.80, representing an earnings surprise of +30.00% [1] Financial Performance - Unifi's revenues for the quarter ended June 2025 were $138.54 million, missing the Zacks Consensus Estimate by 3.46%, and down from $157.45 million year-over-year [2] - Over the last four quarters, Unifi has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Performance - Unifi shares have declined approximately 28.2% since the beginning of the year, contrasting with the S&P 500's gain of 9% [3] - The current Zacks Rank for Unifi is 4 (Sell), indicating expected underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.57 on revenues of $147.41 million, and -$0.11 on revenues of $636.18 million for the current fiscal year [7] - The trend of estimate revisions for Unifi was unfavorable prior to the earnings release, which may impact future stock movements [5][6] Industry Context - The Textile - Products industry, to which Unifi belongs, is currently ranked in the bottom 6% of over 250 Zacks industries, suggesting a challenging environment [8]