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Ingersoll Rand Inc. (IR), headquartered in Davidson, North Carolina, is a global provider of mission-critical flow creation, life science, and industrial solutions. Valued at $36.70 billion by market cap, the company’s services and solutions help increase industrial productivity and efficiency.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and IR perfectly fits that description, signifying its substantial size, stability, and dominance in its industry. IR’s products serve the pharmaceuticals, green technologies, oil and gas, life sciences and laboratories, mining, construction, food and beverages, general manufacturing, automotive, transportation, aerospace, chemicals, and power generation industries.
The global industrial equipment major has fallen 5.9% from its 52-week high of $96.67, which it hit on May 23. Shares of IR are down 3.7% over the past three months, underperforming the broader Nasdaq Composite’s ($NASX) 9.4% gains over the same time frame.
Longer term, IR shares have risen 43.7% over the past year, and in 2024, the stock is up 18.3%. By contrast, the NASX is up 19.4% on a YTD basis and 31.9% over the past 52 weeks.
The stock has been trading below its 50-day moving average since late June but above its 200-day moving average since early November 2023.
On Jun. 14, IR shares closed down more than 3% on news of rival MSC Industrial Direct Co., Inc. (MSM) reporting poor preliminary Q3 adjusted EPS between $1.32 and $1.34, weaker than the consensus adjusted EPS of $1.57. It also cut its adjusted operating margin estimate to between 10.5% and 10.7% from the previous estimate of 12% and 12.8%, citing ongoing heavy manufacturing softness and the slower-than-anticipated ramp in its core customers.
On Jun. 3, IR shares closed down more than 3% after the May ISM manufacturing index fell higher than expected.
On May 3, IR shares closed down more than 6% after reporting Q1 revenue of $1.67 billion, below the Wall Street estimates of $1.70 billion.
Rival Parker-Hannifin Corporation (PH) has underperformed IR. PH stock has gained 33.7% in the past 52 weeks and is up 11% on a YTD basis.
Despite its recent underperformance compared to the NASX, analysts are optimistic about IR’s prospects. The stock has a consensus rating of “Strong Buy” from the 11 analysts covering it, and the mean price target of $99.42 is a 9.3% premium to current levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
