Dover’s (DOV) share price performance over the past quarter has been so-so, only slightly outperforming the overall industrial sector. Still, the company continues to deliver improving margins and decent organic growth at a time when many short-cycle industrials are starting to struggle. With exposure to multiple longer-cycle process markets with healthier near-term fundamentals and a refrigeration business that should be bottoming, I like Dover’s cycle exposure more than many industrials, but weakening orders (down in Q2 after flat performance in Q1) and a possible re-rating of the sector remain concerns.
Valuation is