Strength Seen in IDEX (IEX): Can Its 4.1% Jump Turn into More Strength?
IDEX Corporation (IEX) shares soared 4.1% in the last trading session to close at $220.18. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.4% loss over the past four weeks.
IDEX’s rally is largely driven by optimism over its strong momentum in its fire and rescue businesses. Solid orders for products and services and the acquisition of STC Material Solutions bode well for the company.
This maker of the Jaws of Life device and other engineered products is expected to post quarterly earnings of $1.78 per share in its upcoming report, which represents a year-over-year change of -11.4%. Revenues are expected to be $768.75 million, down 5.2% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Idex, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on IEX going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Idex belongs to the Zacks Manufacturing - General Industrial industry. Another stock from the same industry, Kadant (KAI), closed the last trading session 1.9% higher at $291.41. Over the past month, KAI has returned 9.2%.
Kadant's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $2.10. Compared to the company's year-ago EPS, this represents a change of -9.9%. Kadant currently boasts a Zacks Rank of #4 (Sell).
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
IDEX Corporation (IEX) : Free Stock Analysis Report
Kadant Inc (KAI) : Free Stock Analysis Report