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Davidson, North Carolina-based Ingersoll Rand Inc. (IR) provides various mission-critical air, gas, liquid, and solid flow creation technologies services and solutions worldwide. With a market cap of $35.2 billion, it operates through the Industrial Technologies and Services (IT&S) and Precision and Science Technologies (P&ST) segments.
Shares of Ingersoll Rand have significantly outperformed the broader market over the past year. Over the past 52 weeks, IR stock has soared 28.6% compared to the S&P 500 Index’s ($SPX) 15.1% returns. In 2024, IR is up 12.9%, outpacing the SPX’s 9% gains on a YTD basis.
Zooming in further, IR has also outperformed the S&P 500 Industrial Sector SPDR’s (XLI) 10.9% gains over the past 52 weeks and 6.6% returns on a YTD basis.
Shares of Ingersoll Rand plummeted 9.1% in the following trading session after its Q2 earnings release on Jul. 31. Despite the company's revenue climbing 7% annually and a net income by 3.2%, its Q2 IT&S segment dipped 3% in organic orders, primarily due to challenges faced in the Chinese market. Additionally, the P&ST segment experienced a 1.1% drop in organic revenue. Despite raising full-year guidance, the organic decline in its segments likely contributed to investor concerns and the subsequent decline in share prices.
For the current fiscal year, ending in December, analysts expect Ingersoll Rand to report an EPS growth of 11.6% year over year to $3.18. The company has a history of exceeding the EPS estimates in its quarterly reports. Its EPS for the last reported quarter surpassed the consensus estimates by 8.1%.
Among the 10 analysts covering the IR stock, the consensus rating is a “Moderate Buy.” That’s based on seven “Strong Buy” ratings and three “Holds.”
This configuration has been consistent over the past months.
On Jul. 29, Wells Fargo & Company (WFC) analyst Joe O’Dea maintained a “Buy” rating with a price target of $102.
IR’s mean price target of $101.73 represents a premium of 16.5% to current price levels. The street-high target of $115 indicates a potential upside of 31.7% from current price levels.
On the date of publication, Aditya Sarawgi 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.
