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North Carolina-based Ingersoll Rand Inc. (IR) provides various mission-critical air, gas, liquid, and solid flow creation technologies services and solutions. Valued at a market cap of $40.7 billion, the company’s products include air and gas compression, vacuum, and blower products, fluid transfer equipment and loading systems, power tools, and air treatment equipment, to name a few, which it sells under various brand names.
Companies worth $10 billion or more are generally described as “large-cap” stocks, and Ingersoll Rand fits right into that category with its market cap exceeding this threshold. The specialty industrial machinery company is known for its industrial solutions, flow creation, and sustainability efforts. It sells its products under more than 40 brands, including NASH, CompAir, Ingersoll Rand, Gardner Denver, ARO, Thomas, Milton Roy, and EMCO Wheaton.
Despite a 4.6% decline from its 52-week high of $106.03, achieved on Nov. 25, shares of IR have gained 11.1% over the past three months, surpassing the broader Industrial Select Sector SPDR Fund’s (XLI) nearly 5.3% increase over the same time frame.
Moreover, in the longer term, IR has rallied 37.2% over the past 52 weeks, outpacing XLI’s 23% returns. Shares of IR are up 30.7% on a YTD basis, outperforming XLI’s 20.6% gains over the same time frame.
To confirm its recent bullish trend, IR has been trading above its 200-day moving average since mid-September and has remained above its 50-day moving average since early November.
Shares of IR fell 2.1% following its mixed Q3 earnings release on Oct. 31. The company’s adjusted earnings improved 9.1% year-over-year to $0.84 per share and surpassed the Wall Street estimates of $0.82. However, on the other hand, its revenue of $1.86 billion increased 7% from a year ago but missed the forecasted figure by 1.1%.
Acquisitions contributed 8.9% to revenues, while organic revenues decreased 2.5%. Moreover, the company slightly lowered its full-year 2024 revenue guidance to 5%-7% primarily due to project delays linked to customer readiness, which might have further dampened investor confidence.
IR has lagged behind its rival, Eaton Corporation plc (ETN), which gained nearly 50.4% over the past 52 weeks and 47.8% on a YTD basis.
Looking at IR’s recent outperformance relative to the broader sector, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 12 analysts covering it, and the mean price target of $109.61 suggests a modest 8.4% premium to its current levels.
