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Here's Why it is Worth Investing in IDEX (IEX) Stock Now

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IDEX Corporation (IEX - Free Report) currently boasts robust prospects on strength in its businesses, solid product portfolio, acquired assets and a sound capital-deployment strategy.

The Zacks Rank #2 (Buy) company has a market capitalization of $14.9 billion. In the past month, it has gained 3.4% compared with the industry’s growth of 1%.

Zacks Investment Research
Image Source: Zacks Investment Research

Let’s delve into the factors that make investment in the company a smart choice at the moment.

Business Strength: IDEX is poised to benefit from a diversified business structure, solid product portfolio, execution abilities and growth investments in the quarters ahead. Strength in the company’s industrial, semiconductor and life sciences end markets is likely to drive its performance. Also, improvements in automotive, chemical and energy end markets are likely to be beneficial. For 2022, the company anticipates generating organic sales growth of 5-8% on a year-over-year basis.

Acquisition Benefits:  The company intends to strengthen and expand its businesses through acquisitions. Its acquisition of Nexsight, LLC and its WinCan, Envirosight, MyTana and Pipeline Renewal Technologies businesses (March 2022) is expected to support its position and customer base in the intelligent water technologies market. Also, its buyout of Airtech Group, as well as US Valve Corporation and other entities, added vigor to its Health & Science Technology segment. The company anticipates buyout synergies to boost sales by 4% for the first quarter and 2% for 2022.

Rewards to Shareholders: IDEX remains committed to rewarding shareholders through dividend payouts. In 2021, the company paid out dividends worth $161.1 million. Also, in May 2021, it announced a hike of 8% in its quarterly dividend rate.

Estimate Revisions: In the past 30 days, the Zacks Consensus Estimate for its 2022 earnings has moved up from $7.49 to $7.56 on one upward estimate revision against none downward. Further, the consensus estimate for its 2023 earnings has increased from $7.99 to $8.10 on one upward estimate revision versus none downward.

Other Stocks to Consider

Some other top-ranked companies from the same space are discussed below.

Nordson Corporation (NDSN - Free Report) presently carries a Zacks Rank #2. The company delivered a four-quarter earnings surprise of 9.85%, on average.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Nordson’s earnings estimates have increased 0.4% for fiscal 2022 (ending October 2022) in the past 30 days. Its shares have gained 1.9% in the past month.

Standex International Corporation (SXI - Free Report) presently has a Zacks Rank #2. Its earnings surprise in the last four quarters was 5.85%, on average.

In the past 30 days, Standex’s earnings estimates have been stable for fiscal 2022 (ending June 2022). SXI’s shares have gained 0.8% in the past month.

Ferguson plc (FERG - Free Report) presently carries a Zacks Rank #2. Its earnings surprise in the last four quarters was 14.19%, on average.

In the past 30 days, Ferguson’s earnings estimates have increased 5.9% for fiscal 2022 (ending July 2022). FERG’s shares have lost 7.3% in the past month.

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