Are IDEX traders ready to double down?

From a volatility perspective, IDEX Corporation's stock presents an interesting opportunity for investors. The stock's Total Risk Alpha of -0.23 indicates a potential for higher returns, albeit with a higher risk. However, the stock's Variance of 1.25 suggests a relatively stable price movement, which could be appealing for risk-averse investors. Despite the negative Sortino Ratio of -0.02, the potential upside of 2.78 could make IDEX Corporation an attractive investment for those willing to tolerate some level of risk.

Main Points

IDEX Corporation holds approximately $430.2 million in cash, with a positive cash flow from operations of $683 million. This results in a cash-per-share (CPS) ratio of 9.63.
Published over six months ago
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Reviewed by Vlad Skutelnik

The market's tide is turning, and it might just be the perfect time to ride the wave with IDEX Corporation stock. As a key player in the industrials sector, specifically machinery, IDEX has been making waves in the domestic market. With a valuation market value of $218.89 and a valuation real value of $202.01, the stock exhibits a certain level of volatility that could be capitalized on by savvy investors. The stock's daily balance of power stands at 0.2248, indicating a slight tilt towards the buyers' side. This is further supported by the accumulation distribution figure of 6.2K, suggesting a higher level of stock accumulation than distribution. The period momentum indicator of 0.67 and the price action indicator of 0.64 also hint at a positive trend in the stock's movement. Analysts seem to be in agreement with this positive outlook, with the overall consensus being a 'Buy'. Out of 10 estimates, there are 6 strong buys, 1 buy, and 4 holds. The analyst target price estimated value stands at $222.9, with the highest estimated target price reaching up to $250 and the lowest at $200. This range of estimates further emphasizes the potential upside of investing in IDEX Corporation stock. However, as with any investment, there are risks involved. The possible downside price is $227.91, which is higher than the day's typical price of $218.68. Investors should carefully consider these factors before deciding to capitalize on IDEX Corporation stock. IDEX Corporation, with a daily return of 0.2228% and a volatility rate of 1.0554% over a 60-day investment horizon, is attracting adventurous traders in the machinery sector. However, it's crucial to assess the risk of shorting IDEX based on its current volatility spike. As of March, IDEX shareholders may not see a significant impact on the stock's value due to its very low volatility. Despite this, our calculations suggest that IDEX is currently overvalued, with the real value nearing $202.01 per share.
Volatility is a rate at which the price of IDEX or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of IDEX may increase or decrease. In other words, similar to IDEX's beta indicator, it measures the risk of IDEX and helps estimate the fluctuations that may happen in a short period of time. So if prices of IDEX fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.

How important is IDEX's Liquidity

IDEX financial leverage refers to using borrowed capital as a funding source to finance IDEX Corporation ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. IDEX financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to IDEX's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of IDEX's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between IDEX's total debt and its cash.

IDEX Gross Profit

IDEX Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing IDEX previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show IDEX Gross Profit growth over the last 10 years. Please check IDEX's gross profit and other fundamental indicators for more details.

IDEX Volatility Drivers

IDEX unsystematic risk is unique to IDEX and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in IDEX you can also buy Laser Photonics. You can also mitigate this risk by investing in the industrials sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing IDEX important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in IDEX income statement and balance sheet. Here are more details about IDEX volatility.
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-0.17-0.21-0.17-0.09-0.120.2-0.2-0.22-0.45-0.13-0.17-0.17-0.160.94-0.120.21-0.37-0.420.160.050.06-0.07
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Click cells to compare fundamentals

What is driving IDEX Investor Appetite?

The current bullish price patterns experienced by current IDEX shareholders may raise some interest from investors. The stock closed today at a share price of 218.89 on 459,317 in trading volume. The company executives have been very successful in rebalancing the firm assets at opportune times to take advantage of market volatility in January. The stock standard deviation of daily returns for 90 days investing horizon is currently 1.06. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.
As the old adage goes, "buy low, sell high," and it seems that now may be the time for investors to capitalize on IDEX Corporation stock. Despite a relatively low operating margin of 0.24%, the company boasts a healthy current ratio of 3.23X, indicating its ability to cover short-term liabilities. Furthermore, IDEX's net assets stand at a robust $5.51 billion, and the company has demonstrated a solid five-year return of 1.11%. However, investors should be aware of the stock's volatility, as indicated by a beta of 0.95 and a kurtosis of 1.9. Despite these risks, the company's strong financial position and potential for growth make it an attractive option for investors. .

IDEX showing appearance of lower volatility

IDEX Corporation's stock is exhibiting lower volatility, indicated by its Total Risk Alpha recently decreasing to -0.23. This metric, used to measure a stock's risk-adjusted performance against a theoretical benchmark, could suggest a potential price depreciation. Investors should closely monitor this situation as it may signal a less volatile, but possibly less profitable period for IDEX. This could be beneficial for conservative investors seeking stability, but those seeking higher returns might need to reassess their positions. IDEX Corporation's low volatility is further evidenced by a Treynor Ratio of 0.18, Maximum Drawdown of 4.7, and kurtosis of 1.9. However, we recommend investors to further scrutinize IDEX Corporation to ensure all market information is disseminated and aligns with current expectations about IDEX's upside potential. Understanding market volatility trends can help investors time the market. Proper use of volatility indicators allows traders to measure IDEX's stock risk against market volatility during both bullish and bearish trends.
The increased volatility of bear markets can directly affect IDEX's stock price and cause investor stress as share values drop, often prompting portfolio rebalancing. In conclusion, the IDEX Corporation (IEX) stock shows a promising potential for investors. The Analyst Overall Consensus indicates a 'Buy' with 6 Strong Buys, 1 Buy, and 4 Holds. The Analyst Target Price Estimated Value is at $222.9, which is close to the Naive Expected Forecast Value of $228.97. While there is a possible downside price of $227.91, the possible upside price is $230.03, indicating a potential for profit. However, investors should also consider the Valuation Real Value of $202.01 and the Analyst Lowest Estimated Target Price of $200. Therefore, while there may be some volatility in March, the overall trend for IDEX Corporation stock seems positive. .

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Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of IDEX Corporation. Please refer to our Terms of Use for any information regarding our disclosure principles.

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