Northbrook, Illinois-based IDEX Corporation (IEX) is an applied solutions company specializing in a range of applications such as fluid and metering technologies, health and science technologies, and fire, safety and other products. With a market cap of $14.9 billion, IDEX operations span the Americas, Europe, and the Indo-Pacific.
IDEX has notably underperformed the broader market over the past year. IEX stock has plummeted 17.1% over the past 52 weeks and 6.1% on a YTD basis, compared to the S&P 500 Index’s ($SPX) 17% surge over the past year and 1.3% returns in 2025.
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Zooming in further, IDEX has also underperformed the Industrial Select Sector SPDR Fund’s (XLI) 12.2% gains over the past year and 2.4% returns in 2025.
Despite a strong finish for the year, IDEX stock tanked 9.6% in the trading session after the release of its Q4 results on Feb. 4. While the company reported a robust 9.4% year-over-year growth in net sales to $862.9 million, it missed the Street’s topline expectations. On a positive note, IDEX delivered an 11.6% year-over-year growth in adjusted net income to $155.1 million and its adjusted EPS of $2.04 surpassed the Street’s expectations by a small margin.
Meanwhile, although IDEX remains confident in its ability to drive growth in an uncertain environment, it expects its full-year organic sales to grow by a modest 1% - 3% in FY 2025 and its Q1 2025 organic revenues to decline 3% - 4% compared to the year-ago quarter, which shattered investor confidence.
For the current fiscal 2025, ending in December, analysts expect IEX to report a 4.7% year-over-year growth in adjusted EPS to $8.26. On a brighter note, IDEX has a promising earnings surprise history. It has surpassed the Street’s bottom-line estimates in each of the past four quarters.
Among the 11 analysts covering the IEX stock, the consensus rating is a “Moderate Buy.” That’s based on six “Strong Buy,” one “Moderate Buy,” and four “Hold” ratings.
This configuration has been consistent over the past three months.
On Feb. 6, RBC Capital analyst Deane Dray reiterated an “Outperform” rating on IEX, while setting a price target of $245.
IEX’s mean price target of $234.10 represents a 19.2% premium to current price levels, while its street-high target of $267 indicates a 35.9% upside potential.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
