IDEX Stock Exhibits Strong Prospects Despite Persisting Headwinds

IDEX Corporation IEX is poised to gain from the strong performance of the Fire & Safety/Diversified Products (FSDP) segment. Increase in demand for OEM and integrated solutions in the fire and safety businesses is driving the segment’s revenues. Also, solid momentum in the aerospace end market has been a tailwind for the FSDP segment’s BAND-IT business. IEX’s focus on reducing excess inventory and improving overall productivity has also been proving beneficial for the FSDP segment.Over time, IDEX has steadily strengthened its business through acquisitions. In the first quarter of 2025, acquisitions had a positive impact on sales of 4%. In September 2024, IDEX acquired Mott Corporation and its subsidiaries (Mott), which expanded its applied materials science technology capabilities across high-value end markets. The inclusion of Mott’s technical and application expertise bolstered its micro-precision technology offerings. It enabled the company to penetrate and diversify its offerings in key markets such as semiconductor fabrication, medical technologies and water purification. In December 2023, IEX acquired advanced material science solutions provider STC Material Solutions for a cash consideration of $206 million. This acquisition expanded the company’s expertise in material sciences and offered significant opportunities to collaborate with other IDEX-critical components businesses on comprehensive solution sets for customers.The company believes in rewarding its shareholders handsomely through dividend payments and share buybacks. In the first three months of 2025, IDEX’s dividend payments totaled $52.4 million (up 8% year over year). The current quarterly dividend rate is 71 cents per share (a hike of 2.9% was announced in May 2025). Also, in 2024, the company distributed dividends of $205.3 million (up 7.7% year over year).In the past month, this Zacks Rank #3 (Hold) company’s shares have gained 3.2%. IEX belongs to the Manufacturing - General Industrial industry.Image Source: Zacks Investment ResearchDownsides of IEXIDEX is witnessing weaker volumes in the Health & Science Technologies (HST) segment due to softness in the semiconductor, automotive and industrial businesses. However, its targeted growth initiatives in space and energy transition and strength in aerospace/defense markets are likely to be tailwinds in the long term. The Fluid & Metering Technologies (FMT) segment is experiencing weakness in agriculture, energy and semiconductor businesses. Also, softness in the chemical businesses, due to weakness in the European chemicals market, is acting as a headwind for the segment’s performance.The escalating selling, general and administrative expenses are a threat to IDEX’s bottom line. The metric grew 7.3% year over year in the first 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 130 bps to 25.7% in the same period. Also, the company’s cost of sales recorded an increase of 0.5% year over year in the first quarter.Stocks to ConsiderSome better-ranked companies are discussed below:Crown Holdings, Inc. CCK currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.CCK delivered a trailing four-quarter average earnings surprise of 16.3%. In the past 60 days, the Zacks Consensus Estimate for Crown Holdings’ 2025 earnings has increased 3.8%.AptarGroup, Inc. ATR presently sports a Zacks Rank of 1. The company delivered a trailing four-quarter average earnings surprise of 7.3%.In the past 60 days, the consensus estimate for ATR’s 2025 earnings has increased 5.4%.The Gorman-Rupp Company GRC presently carries a Zacks Rank of 2. It has a trailing four-quarter average earnings surprise of 2.4%.The Zacks Consensus Estimate for GRC’s 2025 earnings has increased a penny in the past 60 days.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Crown Holdings, Inc. (CCK): Free Stock Analysis Report IDEX Corporation (IEX): Free Stock Analysis Report AptarGroup, Inc. (ATR): Free Stock Analysis Report Gorman-Rupp Company (The) (GRC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks