IDEX Rightly Appreciated For Its Excellent Credentials And Advantageous Market Exposures

I've talked about IDEX (NYSE:IEX) as a "best of breed" industrial in the past, and I continue to believe this is one of the best-run and best-positioned industrials out there. Management has shown that they can not only optimize operations but also execute successfully on tuck-in/bolt-on deals that build on existing strengths.

Since my last update, this has been one of the strongest stocks among the industrials I follow, with the shares up almost 25% and beating flat performance for the larger multi-industrial group, as well as other high-value "compounder" industrials like Ametek (AME), Danaher (DHR), Fortive (FTV), Nordson (NDSN), Rockwell (ROK), and Roper (ROP). This outperformance has been well-founded, with strong double-digit revenue growth and healthy margins, as well as broad-based strength in the business.

Valuation is my biggest issue. I realize some investors believe in buying quality and holding on irrespective of valuation, but I think entry prices matter, and it's tough to see how IDEX is substantially undervalued even given above-average growth potential in the coming years.

 

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IDEX Rightly Appreciated For Its Excellent Credentials And Advantageous Market Exposures