Donaldson: The Cal Ripken of Filtration Companies

| About: Donaldson Co (DCI)

Eddy Elfenbein submits: It’s kind of a slow morning, but I’ve got my eye on Donaldson (NYSE:DCI), which is set to report earnings after the close. If you’re not familiar with Donaldson, it’s one of those great boring little company that doesn’t get much attention from Wall Street. Actually, it’s not so little anymore. Donaldson’s market cap is now over $3 billion.

The stock bounced along for most of the year up until its most recent earnings report in September. Donaldson not only beat expectations but it also guided higher for next year. I love seeing that. It’s always important to see positive guidance from your stocks.

Donaldson is the Cal Ripken of mid-cap filtration companies. The company has reported higher profits for 17 straight years. Donaldson now sees 2007 EPS coming in at $1.72 to $1.82 a share, which means the stock is going for about 21 times next year’s estimate.