IDEX Stock Exhibits Strong Prospects Despite Persisting Headwinds

IDEX Corporation’s IEX strong performance of the Fluid & Metering Technologies (FMT) & Health & Science Technologies (HST) segments bodes well. A rise in demand for products across the municipal water business has been proving beneficial for the FMT segment. Higher volume in the industrial businesses bodes well for the segment. Solid momentum in the pharma, life science, semiconductor consumables and data center businesses is aiding the HST segment.  Also, the targeted growth initiatives in the space business and strength in defense markets bode well for the segment.The company solidified its product portfolio and leveraged business opportunities through asset additions. In the third quarter of 2025, acquisitions had a positive impact on sales of 4%. In July 2025, IEX acquired Micro-LAM, Inc. (Micro-LAM), which expanded its optics technologies offerings. The acquired company has been incorporated within the HST segment. In September 2024, IDEX acquired Mott Corp. and its subsidiaries (Mott) for a cash consideration of $1 billion. This acquisition expanded the company’s applied materials science technology capabilities across high-value end markets.IEX’s commitment to rewarding shareholders through dividends and share buybacks is encouraging. In the first nine months of 2025, IDEX’s dividend payments totaled $159.4 million (up 4.2% year over year). The current quarterly dividend rate is 71 cents per share (a hike of 2.9% was announced in May 2025). In September 2025, the company’s board of directors increased the share repurchase authorization to $1 billion. Exiting the third quarter of 2025, IDEX had a remaining balance of $999.7 million under its stock repurchase program.IEX’s Zacks RankIn the past three months, this Zacks Rank #3 (Hold) company’s shares gained 5.6% compared with the industry’s 3.7% growth.Image Source: Zacks Investment ResearchHowever, IDEX has been witnessing weakness in the Fire & Safety/Diversified Products (FSDP) segment. Softness in the dispensing business due to unfavorable timing of dispensing projects in emerging markets and slower equipment replenishment is concerning for the segment. Also, weakness in the fire OEM business and a decrease in demand for rescue tools are acting as headwinds for its performance.The company has a significant presence in the international markets. As a result, its financial performance is subject to various risks like the foreign currency exchange rate, interest rate fluctuations and hyperinflation in some foreign countries. The increased value of the U.S. dollar relative to the local currencies of the foreign markets is likely to affect the top line in the quarters ahead.Stocks to ConsiderSome better-ranked companies are discussed below.Crane Company CR currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.CR delivered a trailing four-quarter average earnings surprise of 9.3%. In the past 60 days, the Zacks Consensus Estimate for Crane’s 2025 earnings has increased 2.9%.Ferguson Enterprises Inc. FERG currently carries a Zacks Rank of 2. FERG delivered a trailing four-quarter average earnings surprise of 7.7%.In the past 60 days, the Zacks Consensus Estimate for Ferguson’s fiscal 2026 earnings has increased 1.3%.Parker-Hannifin Corporation PH presently carries a Zacks Rank of 2. PH delivered a trailing four-quarter average earnings surprise of 6.2%.In the past 60 days, the consensus estimate for Parker-Hannifin’s fiscal 2026 earnings has increased 4%.Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks Now >>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 Parker-Hannifin Corporation (PH): Free Stock Analysis Report IDEX Corporation (IEX): Free Stock Analysis Report Crane Company (CR): Free Stock Analysis Report Ferguson plc (FERG): 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