Donaldson Company, Inc. DCI announced that it would open a distribution center in Olive Branch, MS. This new center will boost the company’s ability to meet increasing customer demand in the mobile solutions aftermarket, which includes heavy-duty trucking, construction, mining and agriculture sectors.

Located in the Memphis, TN metropolitan area, the new distribution center will expand Donaldson’s warehouse space by 200,000 square feet. The Olive Branch facility will provide important space for business growth and improve operations at the main center in Rensselaer, IN. These changes will allow Donaldson to provide fast service to its customers. This underscores its commitment to quality and customer satisfaction.

Zacks Rank & Price Performance

Donaldson currently carries a Zacks Rank #4 (Sell). In the past year, the stock has gained 24.1% compared with the industry’s 39.6% growth.

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Persistent softness in off-road and on-road businesses is concerning for DCI. Rising selling, general and administrative expenses, owing to increasing headcount and incremental expenses associated with investments in acquired businesses, are expected to weigh on its bottom line in the near term. Given the company’s diverse presence, forex woes may hurt its performance.

However, Donaldson stands to benefit from solid momentum across its segments. Robust momentum in the aftermarket business, driven by healthy demand for replacement filters, is driving the Mobile Solutions segment.

Stocks to Consider

Some better-ranked companies from the same space are discussed below.

Atmus Filtration Technologies Inc. ATMU currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

ATMU delivered a trailing four-quarter average earnings surprise of 13.4%. In the past 60 days, the consensus estimate for Atmus’ 2024 earnings has increased by a penny.

Casella Waste Systems, Inc. CWST presently carries a Zacks Rank #2 (Buy). It delivered a trailing four-quarter average earnings surprise of 6.7%.

In the past 60 days, the consensus estimate for CWST’s 2024 earnings has remained steady.

Fuel Tech, Inc. FTEK currently has a Zacks Rank of 2. It delivered a trailing four-quarter average earnings surprise of 94.4%.

In the past 60 days, the Zacks Consensus Estimate for FTEK’s 2024 earnings has remained steady.

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