Is it Good to Invest in IEX?
The question “Is it good to invest in IEX?” has been a frequent refrain for investors since the shares plunged almost 3 percent on BSE. The company has a Growth Style Score of B and Zacks Rank #3 (Hold). Read on to learn about the stock’s merits. Its shares are expected to deliver good returns given its healthy fundamentals and good margins.
IEX shares plunged nearly 3% to Rs 213 apiece on the BSE
IEX, the diversified energy company, reported an increase of 45% in its consolidated internet revenue for the quarter ended March 2022. The net revenue of the company was Rs80.5 crore, up from Rs79 crore a year ago. However, the stock’s decline was largely attributed to weak demand for natural gas, which led to a slump in the stock price. IEX has since rebounded nearly 3% to Rs 213 apiece on the BSE.
IEX had reported a rise in total revenue during the December 2021 quarter, but a decline in margin. It also reported a 37% year-on-year increase in volume. Meanwhile, its board of directors approved an interim dividend of Re 1 per equity share for the financial year ended March 31st, 2022. The company has lowered its profit expectations for the year ahead, but it is not yet out of the woods.
IEX has hit its peak in terms of power prices, with the average price of the commodity rising to Rs 6–7 per unit, compared to Rs 2.95 in July. Equity99 analyst Rahul Sharma believes that IEX shares will touch Rs 650 in the next couple of quarters. IEX is a top utility pick, with Edelweiss predicting it will hit Rs 650 within the next couple of quarters.
IEX has a Zacks Rank #3 (Hold)
If you are looking to make a profit from the IEX earnings report, you should pay attention to its growth style score. This indicator indicates that IEX is likely to post positive surprises. In the past 60 days, six analysts have revised their estimates higher for IEX, which means that investors can expect the company to grow earnings at a fast pace. The Zacks Consensus Estimate for IEX is now $7.69. That means that the average analyst estimate for IEX has increased by 2.8% since the last earnings report.
The Zacks Style Scores are complementary indicators that rate stocks according to three widely followed investing methods. They aim to help investors beat the market over the next 30 days. The Style Scores assess the stocks based on their value, growth, and momentum characteristics. The higher the Style Score, the better the stock is likely to perform. IEX has a Style Score of B and a Zacks Rank of 2.
Idex has a Zacks Rank #2 and a Growth Score of B. Those two factors, together with Idex’s growth characteristics, indicate that it’s likely to be an outperformer and a good pick for growth investors. In addition to its growth-related metrics, Zacks experts also handpick their favorite stocks for a potential 100 percent gain by 2021. Moreover, the analysts’ recommendations have already skyrocketed over the past several months, rising as much as +143.0%, +175.0%, +498%, and even 673.0%.
IDEX Corporation, formerly known as IDEX, provides a wide range of products to the life sciences, industrial, and safety markets. Its diversified business structure and strong product portfolio help mitigate the negative impact of a weaker market in one of its segments. This helps the company increase its sales through buyout synergies. Therefore, IDEX has a Zacks Rank #3 (Hold) rating.
However, Zacks Rank is not the final word on the stock. Stocks with a Zacks Rank of 3 should be considered long-term investments. This is because they often show strong upside potential and are more prone to price fluctuations. This Zacks Rank means that IEX is a safe stock to buy. If you’re looking for growth, IEX has a Zacks Rank #3 (Hold).
Despite its current low valuation, the stock is a solid bet for a long-term investor. While IEX has a low forward P/E ratio of 12.6, it has been cashing in on the global economic recovery since the start of the year. The company’s current cash flow growth is a solid indicator, but its growth is slowed down by a high forward P/E ratio.
IEX has a Growth Style Score of B
Idex has a very impressive record of positive earnings surprises. In the past four quarters, it hasn’t missed the consensus estimate, despite having a Growth Style Score of B. Its most recent earnings report showed that it had a $0.24 EPS beat, but it missed the consensus revenue estimate by 1.94%. Given that Idex has a Growth Style Score of B, it is a great option for growth investors.