Today, investors in Ideanomics (NASDAQ:IDEX) and are seeing some pretty impressive gains. Currently, IDEX stock is up nearly 10% on an otherwise down day in the markets.
Similar to other high-growth stocks, Ideanomics is one such play that has lost momentum of late. The company’s stock price shot to a 52-week high of more than $5.50 per share in February. Since then, shares have been on a consistent, measured decline. Today, investors can pick up shares of IDEX stock for around $2.70 at the time of writing.
It appears exuberance around EV stocks like Ideanomics has winded down substantially. However, investors may want to consider such stocks at these depressed levels today. Ideanomics’ key focus is “is shaping the future of commercial fleet operations by assembling a synergistic ecosystem of subsidiaries and investments across the three key pillars of EV: Vehicles, Charging, and Energy.”
That sounds pretty good to me.
Let’s dive into what specific factors are taking this stock on a nice ride today.
Why IDEX Stock Is Taking Off Today
Today happens to be earnings day for Ideanomics. Indeed, it appears the market is pricing in a better-than-expected earnings beat into this stock. Now, earnings have been fickle this quarter. A number of high-profile growth stocks that reported blowout numbers fell on earnings. Thus, today’s move appears to be a reflection of what the market views as some serious value with IDEX stock at these levels. Analysts are calling for a loss of 18 cents per share on revenue of 11.1 million.
Ideanomics reports after the bell. Accordingly, this will be a stock investors will want to keep their eye on this week.
Investors may also notice this stock has run quite nicely since last Thursday. Ideanomics reported on May 13 that it acquired US Hybrid, a clean energy company focused on “innovative solutions including components, drive trains, and fuel cells to medium and heavy-duty commercial fleet operators.” Accordingly, it appears the market has taken a liking to the M&A strategy underway with Ideanomics.
While US Hybrid’s results aren’t likely to be reflected in this round of earnings, this deal is a step in the right direction. At least, the market views it as such.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.