Billionaire Ken Fisher’s 10 Industrial Stock Picks with Huge Upside Potential

8. Dover Corporation (NYSE:DOV)

Number of Hedge Fund Holders: 44

Upside Potential: 21.85%

Dover Corporation (NYSE:DOV) operates in the range of industrial goods spanning vehicle service, clean energy, fuel systems, biopharma, and data cooling. It works through five business segments, focusing on automation, sustainability, and precision engineering.

In Q1 ended March 31, 2025, Dover posted adjusted earnings of $2.05 per share, jumping 19% from last year and beating forecasts. Dover Corporation (NYSE:DOV) hit a record first-quarter adjusted EBITDA margin of 24%, up 240 basis points, while its free cash flow reached $109 million, about 6% of revenue. Moreover, new orders stayed strong with all divisions booking more than they shipped, though some weakness in vehicle service and aerospace offset gains in other areas.

While the company’s Engineered Products faced headwinds, the Pumps & Process Solutions segment grew 7% organically, thanks to strong biopharma parts and data center cooling connector sales. Dover’s Imaging and Identification business saw 4% organic growth, with good momentum in tracking software. Meanwhile, the Clean Energy & Fueling segment benefited from high demand for fueling systems and clean energy products. Its Climate & Sustainability Technologies improved margins through efficiency gains despite falling revenue.

The company slightly lowered its yearly revenue and earnings targets due to Chinese tariff impacts on steel imports, though management expects a solid second quarter, backed by a healthy backlog. It still aims for a yearly free cash flow of 14-16% of revenue and plans to focus spending on automation and targeted acquisitions. Dover Corporation (NYSE:DOV) is fighting tariff pressures through price adjustments and local manufacturing.

Dover stands out among industrial stocks, with strong demand for biopharma, data centers, and clean energy. Ken Fisher holds $302.1 million in Dover Corporation (NYSE:DOV) shares, making up 0.12% of his portfolio.