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Reasons Why You Should Avoid Betting on IDEX Stock Right Now

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Key Takeaways

  • IDEX faces softness in FMT, hurt by weak agriculture, energy, water and semiconductor markets.
  • Selling, general and administrative expenses rose 11.4% year over year in Q2 2025.
  • Strengthening U.S. dollar pressures margins abroad, adding forex risks to IDEX's performance.

IDEX Corporation (IEX - Free Report) failed to impress investors with its recent operational performance due to softness in the Fluid & Metering Technologies (FMT) segment and increasing selling, general and administrative expenses. Also, foreign currency headwind is an added uncertainty.

IEX currently carries a Zacks Rank #4 (Sell). In the past year, the stock has lost 18.3% against the industry’s 9.4% growth.

Zacks Investment Research
Image Source: Zacks Investment Research

Let’s discuss the factors that are likely to continue taking a toll on this company.

Business Weakness: The company is witnessing softness in the FMT segment. Weakness in the agriculture, energy, water and semiconductor businesses is concerning for it. Also, soft chemical businesses, due to weakness in the European chemicals market, is acting as a headwind for the segment’s performance. The FMT segment’s organic revenues decreased 2% year over year in the second quarter of 2025.

Rising Expenses: IDEX has been dealing with the adverse impacts of rising operating costs and expenses. The company’s selling, general and administrative expenses grew 11.4% year over year in the second quarter of 2025. Increasing amortization expenses and professional services spending are raising the selling, general and administrative expenses. As a percentage of sales, it increased 90 bps to 23.5% in the same period. Also, the company’s cost of sales recorded an increase of 7.4% year over year in the second quarter.

Forex Woes: IDEX’s international presence keeps it exposed to the risk of adverse currency fluctuations. This is because a strengthening U.S. dollar is likely to require the company to either raise prices or contract profit margins in locations outside the United States. Thus, adverse currency movements are a worry.

Stocks to Consider

Some better-ranked companies are discussed below.

Flowserve Corporation (FLS - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

FLS delivered a trailing four-quarter average earnings surprise of 5.5%. In the past 60 days, the Zacks Consensus Estimate for Flowserve’s 2025 earnings has increased 4.7%.

Crane Company (CR - Free Report) presently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter average earnings surprise of 7.5%.

In the past 60 days, the consensus estimate for CR’s 2025 earnings has increased 4%.

Dover Corporation (DOV - Free Report) presently carries a Zacks Rank of 2. DOV delivered a trailing four-quarter average earnings surprise of 4%.

In the past 60 days, the consensus estimate for DOV’s 2025 earnings has inched up 1.2%.

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