Dover – indicator shows buy signal
If you want to evaluate the dynamics of a stock price, you can use the prominent relative strength index, the RSI. After that, for a period of 7 days (or for 25 days as RSI25), the ratio of upward and downward movements is normalized to a distance of 0 to 100. With a value of 27.84, the Dover RSI is the basis for the “buy” rating. The RSI25 comes in at 34.34, resulting in a Hold rating for 25 days. This overall picture leads to a “buy” rating.
Mean dividend yield at Dover
The relationship between the dividend and the current share price is usually given as the dividend yield. The value can be subject to daily fluctuations and is therefore a dynamically changing indicator. With a dividend yield of 1.63 percent, Dover is currently below the industry average. The "Machinery" branch has a value of 11.86, resulting in a difference of -10.23 percent to Dover stock. Based on this result, the editors give the stock a “sell” rating for its dividend policy.
Dover: P/E with buy signal
In our view, Dover is undervalued compared to the industry average (machinery). The stock trades at a price-to-earnings (P/E) ratio of 17.8, giving it a 63 percent gap to the industry P/E of 48.52. This results in a “buy” recommendation on a fundamental basis.
What course do analysts see?
Out of a total of 12 analyst ratings from the last twelve months for Dover shares, 5 ratings are “Buy”, 6 are “Hold” and 1 are “Sell”. This means, on average, a "hold" rating for the security. In the short term, this picture emergesWithin a month there are 1 buy, 1 hold, 0 sell estimates. However, this means that the share is now rated a “buy”. An average of USD 155.42 is calculated from the price targets given. That means the stock could be up 13.88 percent from the last close ($136.48). The resulting recommendation is “Buy”. In summary, Dover receives a “buy” rating from the analysts.
Should Investors Sell Immediately? Or is it worth starting at Dover?
How do the majority of shareholders think?
A longer-term view of communication on the Internet also makes an important contribution to the assessment of a share. For the evaluation, we considered both the criterion of discussion intensity, i.e. the frequency of reports, and the rate of mood change. Dover showed interesting characteristics in this analysis. The intensity of the discussion changes greatly, as there is significantly less activity to be seen. This results in a “sell” assessment. The rate of mood change shows little change. From this, the editors derive a “hold” rating. The bottom line is therefore a “sell” rating.
Is the price return sufficient for the market requirements?
Dover achieved a performance of -18.34 percent over the past 12 months. Similar stocks in the “Machinery” industry are up an average of 52.58%, underperforming Dover by -70.91% on the industry peers. The "Industrial" sector had a median return of 59.16 percent over the past year. Dover was 77.5 percent below that average. The underperformance in both industry and sector comparisons leads to a “sell” rating in this category.
The chart in technical analysis
Trend-following indicators are intended to show whether a security is currently in an up or down trend (see Wikipedia). The moving average is one such indicator, we are looking at the 50 and 200 day moving averages here. First, let's take a look at the longer-term average over the last 200 trading days. For Dover shares, this is currently USD 151.74. The last closing price (136.48 USD) is therefore significantly lower (-10.06 percent deviation in comparison). On this basis, Dover receives a "sell" rating. Now look at the shorter term 50 day moving average which is currently $126.65 hence the last close is above it (+7.76 percent). This means that on this shorter-term analysis basis, Dover is re-rated with a 'buy' rating on the stock. Overall, Dover is given a “hold” rating based on trend-following indicators.
Buy, hold or sell Dover?
How will Dover develop now? Is an entry worthwhile or should investors rather sell? Find out the answers to these questions and why you need to act now in the current Dover analysis.