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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.
