Northbrook, Illinois-based IDEX Corporation (IEX) is an applied solutions company specializing in a range of applications such as fluid and metering technologies, health and science technologies, and fire, safety and other products. With a market cap of $17.6 billion, IDEX operations span the Americas, Europe, and the Indo-Pacific.
IDEX has lagged behind the broader market over the past year. IDEX stock prices have gained 6.9% on a YTD basis and 16.5% over the past year, lagging behind the S&P 500 Index’s ($SPX) surge of 26.2% in 2024 and 32.1% over the past 52 weeks.
Narrowing the focus, IDEX stock has also underperformed the Industrial Select Sector SPDR Fund’s (XLI) 26.1% gains in 2024 and 35.1% returns over the past year.
IEX stock prices surged 7.2% in the trading session after the release of its Q3 earnings on Oct. 29 as the company surpassed Wall Street’s topline and earnings estimates. IDEX observed a resilient organic increase in orders within its Health & Science Technologies segment, strengthening its positioning as it looks for signs of recovery in its life science and semiconductor demand. It also observed growth in the Fluid & Metering Technologies and Fire & Safety/Diversified Products segments’ organic sales, leading to a marginal growth in overall net sales of $798.2 million which exceeded analysts’ consensus estimates by 92 basis points. Moreover, IDEX’s adjusted EPS of $1.90 also surpassed analysts’ projections by 53 basis points leading to the positive momentum in stock prices.
However, the company has observed a notable drop in profitability as its profitability margins have declined across all its segments, which has led to a 10.3% year-over-year drop in adjusted net income to $144.1 million.
For the current fiscal year, ending in December, analysts expect IEX to report a 4.1% year-over-year drop in adjusted EPS to $7.88. Nevertheless, the company has a robust earnings surprise history. It has surpassed analysts' earnings estimates in each of the past four quarters.
IEX stock has a consensus “Moderate Buy” rating overall. Out of the 11 analysts covering the stock, six advise “Strong Buy,” one advises “Moderate Buy,” and four recommend a “Hold” rating.
The configuration has been stable over the past three months.
On Oct. 31, RBC Capital analyst Deane Dray maintained an “Outperform” rating while raising the price target to $248, indicating an upside potential of 6.9% to current price levels.
While IEX’s mean price target of $233.20 suggests a marginal upside potential, its Street-high target of $251 represents an 8.2% premium to current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart- Is It Too Late To Buy This Outstanding AI Stock?
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