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With a market cap of $16.1 billion, IDEX Corporation (IEX) is a global applied solutions company specializing in innovative technologies across diverse industries. Organized into three key segments: Fluid & Metering Technologies (FMT); Health & Science Technologies (HST); and Fire & Safety/Diversified Products (FSDP), it provides high-performance products and services tailored to specific market needs.
Companies valued at $10 billion or more are generally considered "large-cap" stocks, and IDEX fits this criterion perfectly. Its offerings range from precision fluid-handling systems and medical devices to firefighting equipment and industrial clamping solutions. Based in Northbrook, Illinois, IDEX serves critical sectors such as life sciences, energy, water treatment, and emergency services worldwide.
However, IEX has fallen 14.3% from its 52-week high of $246.36, achieved in March. Shares of IEX are up marginally over the past three months, outperforming the Industrial Select Sector SPDR Fund’s (XLI) slight dip over the same time frame.
Nevertheless, longer term, IEX is down 2.9% on a YTD basis, lagging behind XLI’s 16.4% return. Moreover, shares of IDEX Corporation have declined 1.6% over the past 52 weeks, compared to XLI’s rise of 17.3% over the same time frame.
IDEX's stock had been trading above its 50-day moving average since early September and remained above its 200-day moving average since late October. However, the stock has experienced a decline, falling below both moving averages since mid-December.
Shares of IEX climbed 7.2% following its Q3 earnings release on Oct. 29 due to several positive factors. The company's adjusted earnings per share of $1.90 slightly surpassed the consensus estimate, instilling investor confidence despite a year-over-year decline. Additionally, net sales of $798.2 million exceeded consensus expectations, driven by stable organic sales and a positive contribution from acquisitions. Investors were also encouraged by the strong performance in the Fire & Safety/Diversified Products segment and the company raised its full-year adjusted earnings guidance to $7.85 per share - $7.90 per share.
Nevertheless, to emphasize the stock’s underperformance, rival Dover Corporation (DOV) is outperforming IEX. Shares of Dover have gained 23.1% over the past 52 weeks and are up 22.4% on a YTD basis.
Despite IEX's weak performance over the past year, analysts are moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy" from the 11 analysts covering the stock, and as of writing, it is trading below the mean price target of $237.20.
