Diversified

Higher raw-material costs have pressured the firm's cost structure in the past. With limited pricing power of first-fit sales to OEM customers, Donaldson must work hard to achieve manufacturing cost gains as an offset.Even though operating margins are high now, the company soon will need to add

A growing installed base of printers should boost 3D Systems' long-term profitability.

Zebra's distributive reach and superior product offering are advantages over fragmented competition.

ITT's remaining businesses are disparate and difficult to understand. Potential investors may be put off by the steep learning curve.ITT has relatively high exposure to Europe at 30% of revenue. Secular economic troubles facing the Continent could pressure ITT's financial results.Significant

We are lowering our fair value estimate, but Cummins is still well positioned for the long term.

Xylem is disproportionately suffering relative to its peers from the economy, as witnessed by recent and expected organic revenue growth trends and margin guidance.Europe, at 37% of total revenue, is likely to be an ongoing drag on the company's financial results. The newly formed company with a

The new Colfax has 35% exposure to economically challenged Europe. A high concentration of faster-growing Eastern European countries won't prevent pressures from hitting Colfax.The $2.6 billion acquisition of Charter materially raises Colfax's risk profile given the sheer size of the transaction,

Margins with its largest segment, Industrial, are already near peak levels. The firm will be challenged to expand profitability when margins ultimately return to more normal levels.The FTC will require Graco to divest the recently acquired liquid finishing business from ITW on anticompetitive