Yahoo Finance Here's Why Hold Strategy is Beneficial for IDEX (IEX) Stock
IDEX Corporation IEX is gaining from its solid product portfolio, execution abilities and growth investments (including increased exposure in emerging markets, productivity enhancement and digitization) despite supply-chain woes, unfavorable price/cost impacts and higher discretionary expenses.
IDEX expects its Fluid & Metering Technologies segment to benefit from strength in agriculture, water, energy, industrial and Chemical end markets. Solid business in life science, AI, auto, Semicon, pharma and industrial markets will be beneficial for the Health & Science Technologies segment. For the Fire, Safety & Diversified product segment, solid momentum in the fire and rescue, auto and aero end market is expected to aid in the near term.
IDEX has been strengthening and expanding its businesses through asset additions for a while. The acquisition of Muon Group in November 2022, expanded IDEX’s growing platform of precision technology business within the Health & Science Technologies segment. Also, the commercial synergy potential from the combined entities will likely boost offerings for new and existing customers.
The company’s acquisition of KZValve (May 2022) solidified fluid-management solutions in its Banjo Corporation business. The Nexsight, LLC acquisition and its WinCan, Envirosight, MyTana and Pipeline Renewal Technologies businesses (March 2022) drove IEX’s position in the intelligent water technologies market. Also, its purchase of Airtech Group, US Valve Corporation and other entities aided the Health & Science Technology segment. It expects buyout synergies to boost sales 9% for the first quarter and 5% for 2023.
IDEX’s efforts to reward its shareholders through dividend payments and share buybacks are encouraging. The company paid out dividends worth $177.4 million and repurchased shares worth $ $148.1 million in 2022. Its board also announced an 11% hike in its quarterly dividend rate in May 2022.
In light of the above-mentioned positives, we believe, investors should hold on to the IDEX stock for now, as suggested by its current Zacks Rank #3 (Hold). In the past six months, the stock has rallied 5.8%.
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Stocks to Consider
Some better-ranked companies from the Industrial Products sector are discussed below:
Deere & Company DE presently sports a Zacks Rank #1 (Strong Buy). DE’s earnings surprise in the last four quarters was 4.7%, on average. You can see the complete list of today’s Zacks #1 Rank stocks.
In the past 60 days, Deere & Company’s earnings estimates have increased 8% for fiscal 2023. The stock has rallied 14% in the past six months.
Ingersoll Rand Inc. IR presently carries a Zacks Rank #2 (Buy). IR’s earnings surprise in the last four quarters was 8.5%, on average.
In the past 60 days, Ingersoll Rand’s earnings estimates have increased 3% for 2023. The stock has gained 18.4% in the past six months.
AGCO Corporation AGCO presently has a Zacks Rank of 2. AGCO’s earnings surprise in the last four quarters was 13.4%, on average.
In the past 60 days, AGCO’s earnings estimates have increased 2.2% for 2023. The stock has rallied 23.2% in the past six months.
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Deere & Company (DE) : Free Stock Analysis Report
AGCO Corporation (AGCO) : Free Stock Analysis Report
Ingersoll Rand Inc. (IR) : Free Stock Analysis Report
IDEX Corporation (IEX) : Free Stock Analysis Report
