Dj Enpro Price Target Raised To $260.00/Share From $250.00 By Keybanc

What Happened?

A number of stocks fell in the afternoon session after the Dow Jones Industrial Average fell as much as 0.7%, reflecting lingering uncertainty, and capping off a volatile week which saw stocks enjoy some relief as President Donald Trump reduced tensions with European allies by backing off his threat of imposing new tariffs. 

Threats of tariffs initially created uncertainty for businesses, as they can lead to higher costs for multinational corporations and disrupt global supply chains. By withdrawing the threat, the administration removed a significant headwind for the market, prompting a relief rally. This development was a key factor in helping major indexes recover from earlier losses, even as some analysts noted that underlying geopolitical risks and market volatility remain concerns for investors.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Maintenance and Repair Distributors company DXP fell 3.3%. Is now the time to buy DXP? Access our full analysis report here, it’s free.
• Gas and Liquid Handling company SPX Technologies fell 3.3%. Is now the time to buy SPX Technologies? Access our full analysis report here, it’s free.
• Heavy Transportation Equipment company Oshkosh fell 2.5%. Is now the time to buy Oshkosh? Access our full analysis report here, it’s free.
• Electronic Components company Belden fell 2.7%. Is now the time to buy Belden? Access our full analysis report here, it’s free.
• Engineered Components and Systems company Enpro fell 3.2%. Is now the time to buy Enpro? Access our full analysis report here, it’s free.

Zooming In On DXP (DXPE)

DXP’s shares are very volatile and have had 24 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 1 day ago when the stock gained 3% on the news that the US president announced a framework for a future deal with Greenland. 

Wall Street saw a broad-based rally, with the S&P 500 gaining 1.2% as investor concerns over global trade tensions eased. The positive sentiment followed an announcement that reversed course on plans to impose tariffs linked to Greenland, which had caused steep market losses earlier in the week. This recovery reflected renewed optimism in the market, as the threat of a widening trade conflict appeared to subside, encouraging investors to move back into equities.

DXP is up 19.4% since the beginning of the year, and at $128.58 per share, it is trading close to its 52-week high of $132.09 from January 2026. Investors who bought $1,000 worth of DXP’s shares 5 years ago would now be looking at an investment worth $4,887.

What Happened?

A number of stocks jumped in the afternoon session after markets rotated out of tech names to position themselves for a massive injection of government spending. 

The sector was ignited by President Trump's call for a $1.5 trillion defense budget for 2027, a significant increase that sent defense contractors surging. Northrop Grumman jumped over 10% and Lockheed Martin gained nearly 8%, acting as the primary engine for the sector's outperformance.Beyond the immediate defense rally, the industrial sector benefited from a broader stabilization in energy costs, with crude prices rebounding. This combination of policy-driven demand and stabilizing input costs made heavy industry an attractive destination.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Gas and Liquid Handling company Gorman-Rupp jumped 4.2%. Is now the time to buy Gorman-Rupp? Access our full analysis report here, it’s free.
• Engineered Components and Systems company Timken jumped 3.2%. Is now the time to buy Timken? Access our full analysis report here, it’s free.
• Water Infrastructure company Tennant jumped 4.2%. Is now the time to buy Tennant? Access our full analysis report here, it’s free.
• Engineered Components and Systems company Enpro jumped 3.2%. Is now the time to buy Enpro? Access our full analysis report here, it’s free.
• Water Infrastructure company Mueller Water Products jumped 3.5%. Is now the time to buy Mueller Water Products? Access our full analysis report here, it’s free.

Zooming In On Gorman-Rupp (GRC)

Gorman-Rupp’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 6 months ago when the stock gained 7.6% on the news that the company reported record second-quarter financial results that surpassed analyst expectations, driven by strong sales linked to infrastructure spending. 

The industrial pump manufacturer posted earnings of $0.60 per share on a record $179 million in revenue, surpassing analyst expectations. This performance marked a significant improvement compared to the $0.32 per share reported in the same quarter last year. The revenue growth was primarily fueled by a $3.5 million increase in sales to the municipal market, which the company attributed to infrastructure investment. The fire suppression, industrial, and petroleum markets also contributed to the gains. In a further sign of strength, Gorman-Rupp announced record incoming orders of $188 million, up 15.7% from the prior year, which suggested a positive outlook for the second half of the year.

Gorman-Rupp is up 5.8% since the beginning of the year, and at $50.94 per share, has set a new 52-week high. Investors who bought $1,000 worth of Gorman-Rupp’s shares 5 years ago would now be looking at an investment worth $1,507.

Enpro trades at $214.18 and has moved in lockstep with the market. Its shares have returned 9.7% over the last six months while the S&P 500 has gained 11.2%.

Is there a buying opportunity in Enpro, or does it present a risk to your portfolio? See what our analysts have to say in our full research report, it’s free for active Edge members.

Why Is Enpro Not Exciting?

We're cautious about Enpro. Here are three reasons you should be careful with NPO and a stock we'd rather own.

1. Long-Term Revenue Growth Flatter Than a Pancake

Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Unfortunately, Enpro struggled to consistently increase demand as its $1.11 billion of sales for the trailing 12 months was close to its revenue five years ago. This wasn’t a great result and signals it’s a lower quality business.

2. Recent EPS Growth Below Our Standards

Although long-term earnings trends give us the big picture, we like to analyze EPS over a shorter period to see if we are missing a change in the business.

Enpro’s EPS grew at an unimpressive 4.7% compounded annual growth rate over the last two years. On the bright side, this performance was higher than its 1.1% annualized revenue growth and tells us the company became more profitable on a per-share basis as it expanded.

3. Previous Growth Initiatives Haven’t Impressed

Growth gives us insight into a company’s long-term potential, but how capital-efficient was that growth? Enter ROIC, a metric showing how much operating profit a company generates relative to the money it has raised (debt and equity).

Enpro historically did a mediocre job investing in profitable growth initiatives. Its five-year average ROIC was 6.5%, somewhat low compared to the best industrials companies that consistently pump out 20%+.

Final Judgment

Enpro isn’t a terrible business, but it doesn’t pass our quality test. That said, the stock currently trades at 25.8× forward P/E (or $214.18 per share). Investors with a higher risk tolerance might like the company, but we think the potential downside is too great. We're fairly confident there are better stocks to buy right now. We’d suggest looking at the most entrenched endpoint security platform on the market.