Gardner Denver, Inc. (NYSE:GDI)

Expected Earnings growth of 15 %. Gross Margin>30%, Net Margin>10%. ROE>20%. considering these figures a Forward PE beliow 12 indicates an outperformace opportunity.

I got lucky with this one.

Excellent technical chart

Fundamentals/Value

July 24, 2008 10:52 AM EDT

KeyBanc upgrades Gardner Denver (NYSE: GDI) from Hold to Buy. The firm has a $56 price target on the stock.

Shares of Gardner Denver are down 18% today on the back of concerning earnings reported yesterday after the close. The firm believes this weakness represents a compelling buying opportunity as KeyBanc sees numerous catalysts that could drive Gardner Denver's stock price higher:

o A re-acceleration in the Petroleum Pump business, most notably for its higher-margin drilling pumps

o the recent acquisition of CompAir is an excellent fit and will be a notable contributor to earnings growth in 2009. The firm estimates that EPS could increase by $0.25-$0.30 over the next year and

o further margin expansion in Compressor and better free cash flow conversion as a result of greater emphasis on Lean initiatives.

Gardner Denver, Inc. designs, manufactures, and markets compressor and vacuum products, and fluid transfer products primarily in the United States, Europe, Asia, Canada, and Latin America.

1/7/08 1 year price target $ 82

I have only been managing my investments since April 2008 and GDI has been a great stock so far. I would recommend this stock but I'm also new to this. Thanks! :-) Happy trading...

This will be a good pick well into the later of the year. Cramer likes this one a lot. It might be reaching the end of its hike upward, but I expect it to rest in the 60 range

This is actually a Cramer pitch on why GDI is a buy. While I am sometimes skeptical of his views, GDI appears to be very undervalued and may go down in the short term if oil has a significant drop. However, this company has blown away analyst's estimates for the past three quarters, and should be bought on the dip:

Gardner Denver didn’t follow oil’s increase in price Friday, despite the company’s exposure to the commodity. That value gap is the perfect opportunity for investors, Cramer told viewers during Mad Money.

This is one of his new-tech stocks. Gardner Denver GARDNER DENVER INCGDI
53.73 0.52 +0.98% NYSE

Quote | Chart | News | Profile
[GDI 53.73 0.52 (+0.98%) ] makes compressors, blowers, industrial vacuum pumps and fluid-transfer products – all things needed for extracting oil – but the company makes them better, smaller and more energy-efficient than its competitors.

GDI’s success can be measured in market share. It’s number one or two in most of its businesses.

Between the strength of the overall company and Gardner Denver’s oil-related business alone, you’d think the stock is a buy. But here’s another reason: Cramer said the earnings estimates and the multiple are too low.

GDI’s trading at 13 times a $4 forward earnings estimate, 50 cents below where Cramer thinks it should be. And that multiple is below the rest of GDI’s peers. Give the stock the same multiple as the rest of its cohort, and GDI trades up to $65. That’s a 20% bump from where it is now.

How confident is Cramer that Gardner Denver will hit that mark?

“I expect [GDI] to hit the mid-$60s -- 14, 15 points higher maybe -- just by year end,” he said.

Cramer is on to something here. I should've been here earlier.

active

Go wit the flow

1000

News of strong quarter earnings will sustain a bullish trend for a little bit. But be wary.

Stable fund expected to outperform the market. A good pick

I like this stock. It has potential for a surprising growth spurt.

Just hoping

THERE WILL ALWAYS BE A NEED FOR SUCH PRODUCTS AS LONG AS PRODUCTION INDUSTIES ARE AROUND

Great long term and short term prospect