Trade-Ideas LLC identified

Idex

(

IEX

) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Idex as such a stock due to the following factors:

  • IEX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $35.6 million.
  • IEX has traded 461,235 shares today.
  • IEX traded in a range 201.6% of the normal price range with a price range of $3.74.
  • IEX traded above its daily resistance level (quality: 20 days, meaning that the stock is crossing a resistance level set by the last 20 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.

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More details on IEX:

TheStreet Recommends

IDEX Corporation, through its subsidiaries, provides various pumps, flow meters, other fluidics systems and components, and engineered products worldwide. The stock currently has a dividend yield of 1.9%. IEX has a PE ratio of 19. Currently there are 2 analysts that rate Idex a buy, no analysts rate it a sell, and 9 rate it a hold.

The average volume for Idex has been 415,400 shares per day over the past 30 days. Idex has a market cap of $5.2 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.17 and a short float of 4% with 5.52 days to cover. Shares are down 8.3% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Idex as a

buy

. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and good cash flow from operations. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • IDEX CORP has improved earnings per share by 15.9% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, IDEX CORP increased its bottom line by earning $3.44 versus $3.10 in the prior year. This year, the market expects an improvement in earnings ($3.52 versus $3.44).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Machinery industry. The net income increased by 11.3% when compared to the same quarter one year prior, going from $71.44 million to $79.51 million.
  • The current debt-to-equity ratio, 0.60, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, IEX has a quick ratio of 1.78, which demonstrates the ability of the company to cover short-term liquidity needs.
  • 48.90% is the gross profit margin for IDEX CORP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 15.78% is above that of the industry average.
  • Net operating cash flow has increased to $113.35 million or 12.89% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -18.37%.

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