Is it time to invest in Dover Corp shares after boosting FY2021 guidance?

On Tuesday, Dover Corporation (NYSE:DOV) shares advanced by 2.54% after announcing its most recent quarterly results. The company reported its fiscal third-quarter revenue and earnings before the market opened, beating analyst expectations. Dover also boosted its FY2021 earnings forecast ahead of the consensus Street estimate. 

The company posted fiscal Q3 non-GAAP earnings per share of $1.98, beating the average for analyst estimates of $1.85. In addition, its GAAP EPS of $1.81 outperformed the consensus Street estimate by $0.18, while revenue of the quarter by 14.9% to $2.01 billion, $20 million ahead of estimates. 

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Dover shares are now up 38.66% this year and more than 51% over the last 12 months.

Dover’s exciting growth

From an investment perspective, Dover shares trade at an attractive forward P/E ratio of 20.65, making it an exciting option for value investors. Moreover, analysts expect its earnings per share to grow at an average annual rate of 14.29% over the next five years.

Therefore, the stock could also gain the attention of growth investors, while its forward annual dividend yield of about 1.17% may need to improve before putting DOV on the radar of dividend investors.

Technically, Dover Corp shares seem to have recently completed an upward breakout from a descending channel formation. As a result, the stock has rallied above the 100-day moving average, advancing closer to the overbought conditions of the 14-day RSI.

Therefore, investors could target short-term pullbacks at about $166.52, or lower at $161.47. However, if the price continues to advance, it could find resistance at $176.21, or higher at $181.48.

Is it too late to buy?

In summary, although Dover Corp shares still look competitively valued despite Tuesday’s post-earnings rise, the stock has moved closer to overbought conditions, creating an opportunity for a pullback.

Therefore, it may be best to wait for the stock to retest the crucial support zones before betting on Dover’s exciting growth prospects.

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