IDEX Corporation IEX is benefiting from sustained demand in data center power, semiconductor, space and defense markets. Accretive acquisitions and shareholder-friendly policies also bode well.
IEX currently carries a Zacks Rank #2 (Buy). Let’s delve into the factors that have been aiding the firm for a while now.
Business Strength: IDEX is benefiting from demand across data center, semiconductor, space and defense markets within the Health & Science Technologies (HST) segment, while municipal water and mining continue to support the Fluid & Metering Technologies (FMT) segment. In second-quarter 2026, HST organic sales rose 12% and organic orders increased 47%, extending backlog visibility into 2027. FMT organic sales increased 1% and orders rose 11%, with water and mining gains partly offset by energy, agriculture and chemical softness. The company raised its 2026 organic sales growth outlook to 5-6% from 3-4%, supported by a larger HST order book and improving demand in its industrial businesses. This mix of secular and industrial demand is expected to support IDEX’s growth beyond the latest quarter.
Accretive Acquisition: IDEX continues to undertake acquisitions to expand its technology portfolio and reach higher-value markets. In second-quarter 2026, acquisitions added 1% to consolidated sales growth and 2% to HST sales growth, reflecting Micro-LAM, acquired in July 2025. Consolidated organic sales also rose 5% in second-quarter 2026, alongside the 1% acquisition/divestiture contribution. Micro-LAM expands IDEX’s optics technology offerings within HST. The September 2024 acquisition of Mott for $1 billion added applied materials science capabilities and broadened the company’s exposure to semiconductor fabrication, medical technologies and water purification.
In the past year, the company’s shares have gained 36.2% against the industry‘s 0.7% decline.
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Rewards to Shareholders: IEX is committed to returning value to shareholders through dividend payments and share repurchases. In second-quarter 2026, the company paid about $54 million in dividends and repurchased $77 million of shares. For the first six months of 2026, dividend payments totaled $106.7 million compared with $105.9 million a year earlier, while cash paid for share repurchases increased to $153.4 million from $100 million.
Estimate Revisions: The Zacks Consensus Estimate for IEX’s 2026 earnings is pegged at $8.82 per share, indicating an increase of 3.9% from the 60-day-ago figure. The consensus estimate for 2027 earnings is pegged at $9.68 per share, indicating a rise of 24.6% in the same period.
Other Stocks to Consider
Some other top-ranked companies from the same space are discussed below:
Generac Holdings Inc. GNRC presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The company delivered a trailing four-quarter average earnings surprise of 13.7%. In the past 60 days, the consensus estimate for GNRC’s 2026 earnings has increased 8.5%.
Applied Industrial Technologies AIT presently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter average earnings surprise of 4.3%.
The Zacks Consensus Estimate for AIT’s fiscal 2027 earnings has increased 1.7% in the past 60 days.
Helios Technologies HLIO currently carries a Zacks Rank of 2. HLIO delivered a trailing four-quarter average earnings surprise of 13.1%.
In the past 60 days, the Zacks Consensus Estimate for Helios Technologies’ 2026 earnings has increased 10.4%.
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IDEX Corporation (IEX): Free Stock Analysis Report
Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report
Generac Holdings Inc. (GNRC): Free Stock Analysis Report
Helios Technologies, Inc (HLIO): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).