3 Reasons Why We Like DXP (DXPE)
DXP: A Standout Performer
Currently priced at $140.21, DXP has proven to be an exceptional investment for its shareholders. Since March 2021, the stock has surged by 308%, far outpacing the S&P 500’s 72.4% increase. Over the past six months, DXP’s share price has climbed another 18.4%, fueled by robust quarterly earnings.
Is it still wise to invest in DXPE at this point, or are investors getting ahead of themselves?
What Makes DXP a Strong Company?
DXP (NASDAQ:DXPE) was established during the rise of the oil industry in Texas and specializes in supplying pumps, valves, and other essential industrial equipment.
1. Impressive Revenue Growth Signals Momentum
Consistent sales growth over time is a hallmark of a high-quality business. While many companies can deliver strong results for a quarter or two, only a select few sustain growth for years. DXP has achieved an outstanding 14.9% annualized revenue increase over the past five years, outperforming its industry peers and demonstrating strong demand for its products.
DXP Quarterly Revenue
2. Expanding Operating Margins and Higher Profits
Operating margin is a crucial indicator of a company’s profitability, reflecting earnings before taxes and interest. Over the last five years, DXP’s operating margin has improved by 5.2 percentage points, thanks to its accelerating sales and increased operational efficiency. For the most recent twelve months, the operating margin stands at 8.8%.
DXP Trailing 12-Month Operating Margin (GAAP)
3. Exceptional Long-Term EPS Growth
Tracking earnings per share (EPS) over time reveals whether a company’s revenue translates into real profit. DXP’s EPS has grown at a remarkable 47.4% compound annual rate over the past five years, outpacing its revenue growth and indicating that the company has become more profitable per share as it expands.
DXP Trailing 12-Month EPS (Non-GAAP)
Conclusion
These factors contribute to our positive outlook on DXP. With its stock recently outperforming the broader market and trading at a forward P/E of 22.5 (or $140.21 per share), investors may wonder if now is the right time to buy.
Top Stocks for Every Market Environment
Bonus: Our Top 5 Growth Picks — The most successful stocks often share one trait: explosive revenue growth. Companies like Meta, CrowdStrike, and Broadcom, all flagged by our AI, delivered returns of 315%, 314%, and 455%, respectively.
Discover which five stocks are highlighted this month—at no cost.
Our selections include well-known names like Nvidia, which soared 1,326% from June 2020 to June 2025, as well as lesser-known companies such as Tecnoglass, which achieved a 1,754% five-year return.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
AP Top Extended Financial Headlines at 12:15 a.m. EDT
How Chainlink’s Partnership With Jupiter Could Boost LINK

