We have issued an updated research report on IDEX Corporation (IEX - Free Report) on Dec 26.
This industrial machinery currently carries a Zacks Rank #4 (Sell). Its market capitalization is approximately $9.1 billion.
Let’s delve deeper and discuss what led to the company’s poor investment appeal.
Share Price Performances, Poor Valuation & Earnings Estimate Revision: Market sentiments are currently against IDEX. Its stock price has decreased roughly 22.1% in the past three months versus the industry’s decline of 21.8%.
The company’s stock appears overvalued compared with the industry. On a Price/Earnings (P/E) basis, the stock is currently trading at 22.7x, higher compared with the industry’s 14.3x. Further, the stock’s current valuation multiple is above the industry’s highest levels for the past three months of 18.6x.
In the past 60 days, earnings estimates on the stock have remained unchanged at $5.36 per share for 2018. However, accounting for one downward revision, earnings estimates for 2019 have declined 0.2% from the 60-day-ago tally to $5.76.
IDEX Corporation Price and Consensus