Wednesday's IBD 50 Stocks To Watch pick, industrial giant Ingersoll Rand, is one of the best stocks to buy and watch right now, as it continues to make new highs in the stock market.
Ingersoll Rand manufactures, markets and services various equipment for a variety of applications.
The firm has three main divisions: the Industrials Group, the Energy Group and the Medical Group. The Industrials Group focuses on products for primarily industrial manufacturing, transportation, mining and construction. The Energy Group manufactures systems for power generation and environmental applications. Finally, the Medical Group supplies compressor and vacuum pumps used in medical and laboratory applications.
On Aug. 2, Ingersoll reported better-than-expected second-quarter earnings and revenue. The company's earnings jumped 26% to 68 cents a share vs. the year-ago period. Sales grew 17% to $1.68 billion.
"We continue 2023 with incredible momentum, delivering an outstanding performance during the second quarter with strong organic revenue growth across the business segments while seizing opportunities to deliver on our inorganic growth commitments," commented CEO Vicente Reynal in the earnings news release.
Reynal added, "These results have led us to raise our full year guidance on total revenue growth, organic revenue growth, Adjusted EBITDA, and Adjusted EPS."
IR Stock's IBD Ratings
Boasting a solid long-term fundamental track record and double-digit earnings growth in the most recent two quarters, IR stock shows a solid 92 Earnings Per Share Rating, according to IBD Stock Checkup. This rating takes into account EPS growth and stability of earnings over the past three years. The two most recent quarters are weighted more heavily.
IR stock displays a near-perfect 98 IBD Composite Rating, with solid fundamentals in the latest quarters coinciding with strong stock price performance since July 2022. The IBD Composite Rating is designed to help investors easily gauge the quality of a stock's fundamental and technical metrics.
Ingersoll Is One Of Best Stocks To Buy And Watch
Industrial giant Ingersoll Rand's stock is making new highs this week following a key test of its 50-day moving average, per IBD MarketSmith chart analysis. IR stock edged lower Wednesday midday in the stock market today.
In late July, shares pulled back to that often-decisive 50-day level where they found much-needed support. Then, in early August, the stock received a boost from the company's strong Q2 earnings results.
A key technical indicator to watch is the relative strength line. Currently, the RS line is at new highs, a sign of big outperformance compared with the S&P 500. The RS line measures a stock's price performance vs. the S&P 500 and is the blue line plotted on every IBD chart.
Solid fundamentals, along with the recent support at the 10-week line, make IR one of the best stocks to buy and watch in today's stock market.
With the major stock indexes pulling back from their 2023 highs, the market outlook has been downgraded to an uptrend under pressure, per IBD's The Big Picture. In this climate, investors should be looking for top stocks holding up amid the recent market weakness.
Best Stocks To Buy And Watch
Three recent IBD 50 Stocks To Watch picks, which are among the best stocks to buy and watch.
| Company | Symbol | Buy point | Type of base |
|---|---|---|---|
| Deckers Outdoor | 512.00 | 10-week support | |
| Apollo Global | 83.37 | Tight area | |
| Workday | 223.51 | 10-week support |
Source: IBD Data As Of Aug. 9, 2023
Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on the best stocks to buy and watch and the stock market.
