Long-term investing candidates often share a few common traits: steady profit growth, a product that's needed in good times or bad, and geographic diversification.
Idex (IEX) fits the bill on most of those counts. The Northbrook, Ill., company makes pumps, valves, flow meters and other engineered fluid-handling equipment.
Its four segments cover markets such as agriculture, chemical processing, fuels, health care, food and beverage, and water.
The fluid and metering segment accounted for 42% of 2007 revenue, followed by health and safety with 24%, fire and safety/diversified with 21% and dispensing with 13%.
More than half of sales, 54%, came from the U.S. and 25% from Europe. Other countries, which include Australia, Brazil, China, India, Mexico and Singapore, made up the remaining 21%.
Idex has increased its annual profit in each of the past six years, and is expected to do so for at least two more years. Analysts call for 12% growth this year and 12% the next.
A 23% five-year growth rate in earnings per share and an EPS Stability Rating of 3 may also appeal to the long-term investor.
Annual pretax margin improved in each of the past six years, reaching 17.6% in 2007.
The stock reached an all-time high Aug. 9 before easing to start a base. It corrected as much as 40%, more than many other stocks with stable earnings performance, but still within acceptable range given the bear market at the time.
The week it hit the low of its base, Idex closed in the upper half of its range in heavy trade, a sign of support. It's now 14% off its high.
Click here to view an Excel spreadsheet of the screen below with expanded data.
Long-Term Investor Screen
Symbol Company Name EPS
Stability
Rating EPS
Rating Additional
Research
CVD Covance Inc 1 88
EMR Emerson Electric Co 2 88
PX Praxair Inc 2 87
AFL A F L A C Inc 2 82
ANSS Ansys Inc 3 97
AME Ametek Inc 3 92
ROP Roper Industries Inc 3 91
IDXX Idexx Laboratories Inc 3 87
NTRS Northern Trust Corp 3 86
SRCL Stericycle Inc 3 86
APH Amphenol Corp Cl A 4 94
DRS D R S Technologies Inc 4 89
GD General Dynamics Corp 4 89
DHR Danaher Corp 4 86
APD Air Products & Chemicals 4 85
BCR Bard C R Inc 4 80
HSC Harsco Corp 5 92
FLIR Flir Systems Inc 5 91
VAR Varian Medical Systems 5 83
BIIB Biogen Idec Inc 6 96
KEX Kirby Corp 6 95
ARG Airgas Inc 6 92
CHRW C H Robinson Worldwide 6 90
TRMB Trimble Navigation Ltd 6 89
STR Questar Corp 6 89
PKI Perkinelmer Inc 6 87
FAST Fastenal Co 7 92
SII Smith International 7 91
WFT Weatherford Intl Ltd 8 95
BLK Blackrock Inc 8 93
HRS Harris Corp 8 91
SLB Schlumberger Ltd 8 91
XOM Exxon Mobil Corp 9 91
GILD Gilead Sciences Inc 9 89
ADM Archer Daniels Midland 10 90
GOOG Google Inc 11 98
CSX C S X Corp 11 95
HAL Halliburton Company 11 89
PH Parker-Hannifin Corp 12 92
FMC F M C Corp 12 83
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