DXP Enterprises: Low Valuation And Diversification Are In Focus

Badsha Chowdhury profile picture
Badsha Chowdhury
1.15K Followers

Summary

  • 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
1.15K Followers
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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