Is Ideanomics a Smart Electric Vehicle Stock to Add to Your Portfolio?

: IDEX | Ideanomics Inc. News, Ratings, and Charts

IDEX – Although electric vehicle company Ideanomics (IDEX) has been making several positive moves, it is on the brink of losing its Nasdaq listing. So, let’s evaluate if it is wise to bet on the stock now. Read on.

Ideanomics, Inc. (IDEX) in New York City focuses on driving the adoption of commercial electric vehicles (EVs) and associated energy consumption. It recently finalized its majority ownership stake in Energica Motor Company S.p.A., expanding its offerings in the mobility sector. The company also plans to unveil a new state-of-the-art EV Experience Center in New Jersey, which is expected to be operational by the end of 2022 and will increase its ability to manufacture and showcase its products.

However, the stock could lose its listing in Nasdaq if it fails to regain compliance with Nasdaq’s listing rules promptly.

The stock has declined 24.4% in price over the past three months and 66.3% over the past nine months to close yesterday’s trading session at $0.87. In addition, it is currently trading 75.9% below its 52-week high of $3.61, which it hit on June 10, 2021. So, IDEX’s near-term prospects look bleak.

Click here to checkout our Electric Vehicle Industry Report for 2022

Here is what could influence IDEX’s performance in the upcoming months:

Nasdaq Listing at Risk

On March 18, 2022, IDEX received a notice from The Nasdaq Stock Market LLC stating that because it has not yet filed its Form 10-K, the company is no longer in compliance with Nasdaq Listing Rule 5250(c)(1), which requires listed companies to file all required periodic financial reports with the Securities and Exchange Commission in a timely manner.

Low Profitability

In terms of its trailing-12-month asset turnover ratio, IDEX’s 0.27% is 65.5% lower than the 0.78% industry average. Its 1.51% trailing-12-month CAPEX/Sales is 44.1% lower than the 2.71% industry average. Furthermore, the stock’s trailing-12-month ROCE, ROTC, and ROTA are negative, versus the 13.68%, 6.94%, and 5.16% respective industry averages.

Unfavorable Analyst Estimates

Analysts expect IDEX’s EPS to decrease 100% for the quarter ending June 30, 2022. Also, its EPS is expected to remain negative in the current quarter and year.

POWR Ratings Reflect Bleak Prospects

IDEX has an overall F rating, which equates to a Strong Sell in our POWR Ratings system. The POWR Ratings are calculated by accounting for 118 distinct factors, with each factor weighted to an optimal degree.

Our proprietary rating system also evaluates each stock based on eight distinct categories. IDEX has an F grade for Quality, which is in sync with its lower-than-industry profitability ratios.

The stock has a D grade for Sentiment. This is justified because analysts expect its EPS to decline in the near term. In addition, IDEX has an F grade for Value, which is in sync with its 3.43x forward P/S, which is 162.3% higher than the 1.31x industry average.

IDEX is ranked #157 among 158 stocks in the F-rated Software – Application industry. Click here to access IDEX’s Momentum, Stability, and Growth ratings.

Click here to check out our Software Industry Report for 2022

Bottom Line

IDEX is currently trading below its 50-day and 200-day moving averages of $0.98 and $1.68, respectively, indicating a downtrend. Because the stock looks overvalued at its current price level, we think it is best to avoid it now.

How Does Ideanomics Inc. (IDEX) Stack Up Against its Peers?

While IDEX has an overall POWR Rating of F, one might want to consider investing in the following Software – Application stocks with an A (Strong Buy) rating: Commvault Systems, Inc. (CVLT), Rimini Street Inc. (RMNI), and Progress Software Corporation (PRGS).

Click here to checkout our Electric Vehicle Industry Report for 2022


IDEX shares were trading at $0.88 per share on Wednesday afternoon, up $0.01 (+1.55%). Year-to-date, IDEX has declined -26.67%, versus a -6.46% rise in the benchmark S&P 500 index during the same period.


About the Author: Nimesh Jaiswal


Nimesh Jaiswal's fervent interest in analyzing and interpreting financial data led him to a career as a financial analyst and journalist. The importance of financial statements in driving a stock’s price is the key approach that he follows while advising investors in his articles. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
IDEXGet RatingGet RatingGet Rating
CVLTGet RatingGet RatingGet Rating
RMNIGet RatingGet RatingGet Rating
PRGSGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


:  |  News, Ratings, and Charts

Is the Bear Market Over???

The S&P 500 (SPY) quickly dispensed with 2 key levels of resistance on Wednesday following statements by Fed Chairman Powell. Now more people are contemplating that the 2022 bear market may be over and time to get more bullish. 40 year investment veteran Steve Reitmeister weighs in on this timely topic in his new commentary. Spoiler Alert: he is not impressed and still believes that the bears have the upper hand. Read on below for the full story...

:  |  News, Ratings, and Charts

5 Stocks With Juicy Dividends to Buy Now

A possible recession caused by the Fed’s continued interest rate hikes is expected to weigh on investor sentiment and keep the market volatile in the upcoming months. Therefore, investors looking to limit risks and add stability to their portfolios could buy Sysco (SYY), Hillenbrand (HI), Ennis (EBF), Sisecam Resources (SIRE), and Genie Energy (GNE), as they have a history of consistent dividend payments. Read on…

:  |  News, Ratings, and Charts

3 Stocks That Can Help Ease Your Recession Fears

Major macroeconomic headwinds have heightened recessionary fears in the economy. Moreover, the Fed will likely keep raising rates next year as well. Amid fears of a downturn, fundamentally strong stocks PepsiCo (PEP), Humana (HUM), and Weis Markets (WMK) might be ideal investments based on their stable and consistent dividend history. Read on...

:  |  News, Ratings, and Charts

1 Energy Stock to Stay Bullish on in 2023

Despite widespread market uncertainties, energy company Marathon Petroleum (MPC) recently increased its dividend payouts by almost 30%. It has gained more than 90% in 2022, and Wall Street analysts expect it to rally further shortly. Therefore, investors might consider staying bullish on MPC in 2023. Keep reading…

:  |  News, Ratings, and Charts

3 Stocks That Can Help Ease Your Recession Fears

Major macroeconomic headwinds have heightened recessionary fears in the economy. Moreover, the Fed will likely keep raising rates next year as well. Amid fears of a downturn, fundamentally strong stocks PepsiCo (PEP), Humana (HUM), and Weis Markets (WMK) might be ideal investments based on their stable and consistent dividend history. Read on...

Read More Stories

More Ideanomics Inc. (IDEX) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All IDEX News