The latest GPUs need a type of rare earth metal called Dysprosium and there are only 36 companies in the world exploring or producing it. Find the list for free.
For Gorman-Rupp, the core investment case still rests on a fairly straightforward belief: that a niche, industrial pump manufacturer with seasoned management, improving margins and a long dividend record can keep turning modest revenue gains into steadily higher profits over time. Recent analyst upgrades to a consensus “Buy” do not change the company’s near term business drivers, but they could matter for the share price by pulling more attention to a stock that has already delivered a strong multi-year total return. The key short term catalysts remain execution on earnings, debt management and sustaining profit growth after a very large jump in 2024 and 2025. On the risk side, a higher profile after these ratings may reduce the margin of safety if growth slows or leverage bites.
However, investors should be aware of how Gorman-Rupp’s elevated debt could affect that story. Gorman-Rupp's shares are on the way up, but could they be overextended? Uncover how much higher they are than fair value.Fair value estimates from four Simply Wall St Community members span roughly US$28.56 to US$59. With analyst optimism now more visible, you are seeing how different participants weigh steady earnings growth against higher debt and slower forecast revenue trends, and it is worth comparing those viewpoints side by side.
Explore 4 other fair value estimates on Gorman-Rupp - why the stock might be worth 38% less than the current price!
Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.
Don't miss your shot at the next 10-bagger. Our latest stock picks just dropped:
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com