Nordson Stock Story

NDSN

- USA Stock

USD 204.94 5.74 2.88%

Macroaxis Story

Today we may see the proof that General Electric would recover slower from the latest dip as its shares fell 0.65% to Nordson Corp's 0.32%. As many rational traders are trying to avoid industrials space, it makes sense to outline Nordson Corp a little further and understand how it stands against General Electric and other similar entities. We are going to inspect some of the competitive aspects of both Nordson and General.

Published over a month ago

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Nordson Corp Current Investor Sentiment

Investor biases related to Nordson Corp's public news can be used to forecast risks associated with investment in Nordson. The trend in average sentiment can be used to explain how an investor holding Nordson can time the market purely based on public headlines and social activities around Nordson Corp. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.

Nordson Corp's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Nordson Corp's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Nordson Corp's news discussions. The higher the estimate score, the more favorable is the investor's outlook on Nordson Corp.

Nordson Corp Maximum Pain Price across 2022-07-15 Option Contracts

Nordson Corp's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Nordson Corp close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Nordson Corp's options.

Is Nordson riskier than General Electric (NYSE:GE)?

By analyzing existing basic indicators between Nordson Corp and General, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in General with a short position in Nordson Corp. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Nordson Corp has an asset utilization ratio of 100.73 percent. This suggests that the company is making $1.01 for each dollar of assets. An increasing asset utilization means that Nordson Corp is more efficient with each dollar of assets it utilizes for everyday operations.

Is Nordson riskier than General Electric (NYSE:GE)?

How important is Nordson Corp's Liquidity

Nordson Corp financial leverage refers to using borrowed capital as a funding source to finance Nordson Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Nordson Corp financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Nordson Corp's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.

It is good to see analyst projects for Nordson Corp, but it might be worth checking our own buy vs. sell analysis

Acquisition by Deford John A of 104 shares of Nordson Corp subject to Rule 16b-3

Legal trades by Nordson Corp insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:

Nordson insider trading alert for grant of common stock by Deford John A, the corporate stakeholder, on 2nd of May 2022. This event was filed by Nordson Corp with SEC on 2022-05-02. Statement of changes in beneficial ownership - SEC Form 4 [view details]

Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Another Deeper Perspective

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Lets now check Nordson Corp revenue. Based on the latest financial disclosure, Nordson Corp reported 2.44 B of revenue. This is 30.26% lower than that of the Industrials sector and significantly higher than that of the Specialty Industrial Machinery industry. The revenue for all United States stocks is 74.14% higher than that of Nordson Corp. As for General Electric we see revenue of 74.16 B, which is much higher than that of the Specialty Industrial Machinery

74.2 B

NDSN	2.44 Billion	3.19
Sector	0.0	0.0
GE	74.16 Billion	96.81

Nordson Corp has 100 percent odds to go over $201 this year

Latest Kurtosis is up to 0.07. Price may slide again. Nordson Corp exhibits very low volatility with skewness of -0.31 and kurtosis of 0.07. However, we advise investors to further study Nordson Corp technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Nordson Corp's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Nordson Corp's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Nordson Corp Implied Volatility

Nordson Corp's implied volatility exposes the market's sentiment of Nordson Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Nordson Corp's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Nordson Corp stock will not fluctuate a lot when Nordson Corp's options are near their expiration.

Our Conclusion on Nordson Corp

Whereas some firms in the specialty industrial machinery industry are either recovering or due for a correction, Nordson may not be as strong as the others in terms of longer-term growth potentials. With a somewhat neutral outlook on your 90 days horizon, it may be better to hold off any trading activity and neither acquire new shares of Nordson nor exit your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Nordson Corp.

Editorial Staff

Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management. View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Nordson Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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