DXP Enterprises, Inc. (NASDAQ:DXPE)
CAPS Rating:
The Company is engaged in the business of distributing maintenance, repair and operating products, equipment and service to industrial customers.
The Company is engaged in the business of distributing maintenance, repair and operating products, equipment and service to industrial customers.
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This company has dramatically impressive earnings quarter after quarter. Its stock price fluctuates wildly at the market's whim, but only because so few people really understand what they do.DXPE sells replacement parts (new and reconditioned) for all kinds of pumping equipment. These are not discretionary products. If companies want to keep moving fluids (Oil, Water, Chemicals) then they have to keep their equipment and fluid carrying infrastructure operational.DXPE has put its earnings to good use, snapping up minor competitors to build their geographic presence and the breadth of their product offerings.Because this stock is so volatile, it's not for the faint of heart, but right now it's an unbelievable bargain. In my real life portfolio, I'm planning to get in and out of it several times in the next month or so, playing the 10 to 15% swings. But I consider it a good investment in the medium-term as well.