DXP Enterprises: Low Valuation And Diversification Are In Focus

Badsha Chowdhury profile picture
Badsha Chowdhury


  • DXPE's short-term drivers have improved following the increase in the industrial and energy activity.
  • The company's focus is shifting to the non-energy market, which can compensate for some of its demand decline issues.
  • Despite strong liquidity, investors may find concerns over its leveraged balance sheet.
  • The stock is relatively undervalued, which may have prompted the recent share repurchase.

Industrial technology concept. Communication network. INDUSTRY 4.0. Factory automation.
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Energy Market Recovery Will Affect DXPE Positively

In the past couple of quarters, DXP Enterprises' (NASDAQ:DXPE) outlook has mended perceptively following the recovery of the US economy and industrial production. Strategically, it has also been slowly diversifying

This article was written by

Badsha Chowdhury profile picture
I have more than 14 years of experience in analyzing and writing on stocks. I write on both long and short sides in an unbiased manner. I have been covering the energy sectors for the past 7 years, with the primary focus on the oilfield equipment services sector. I also cover the Industrial Supply industry. I occasionally co-author with Seeking Alpha contributor Thomas Prescott.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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