Ingersoll Rand Inc. (IR), headquartered in Davidson, North Carolina, is a global provider of mission-critical flow creation and industrial solutions. Valued at $37.98 billion by market cap, the company’s services and solutions help increase industrial productivity and efficiency. The company’s Industrial Technologies & Services segment manufactures air compressors, couplers, vacuum pumps, and blowers. Its Precision & Science Technologies segment engages in manufacturing products, including dosing and metering pumps and liquid and gas pumps for use in life sciences, medical, water, and wastewater markets.
Shares of this global industrial equipment giant have outperformed the broader market considerably over the past year. IR has gained 59.3% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 26.9%. In 2024 alone, IR stock is up 23.1%, surpassing the SPX’s 11.6% rise on a YTD basis.
Zooming in further, IR’s outperformance is also apparent compared to the Industrials ETF Vanguard (VIS). The exchange-traded fund has gained about 28% over the past year. Moreover, IR’s gains on a YTD basis outshine the ETF’s 10% returns over the same time frame.
On May 6, IR shares surged more than 2% after Fitch Ratings upgraded the company’s long-term issuer default rating to BBB from BBB- and raised the outlook to positive from watch positive.
On May 2, IR reported its Q1 results, with revenue coming in at $1.67 billion, below Wall Street expectations of $1.70 billion. The stock fell more than 5% in the session after the results were released.
For the current fiscal year, ending in December, analysts expect IR’s EPS to grow 10.2% to $3.14 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 11 analysts covering IR stock, the consensus rating is a “Strong Buy.” That’s based on eight “Strong Buy” ratings and three “Holds.”
This configuration has been consistent over the past two months.
Recently, Barclays analyst Julian Mitchell maintained an “Overweight” rating on IR stock and lowered the price target from $105 to $104, implying a potential upside of 9.2% from current levels.
The mean price target of $98.67 represents a 3.6% premium to IR’s current price levels. The Street-high price target of $110 suggests an upside potential of 15.5%.
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.
