Is Ingersoll Rand Stock Underperforming the Dow?

Ingersoll Rand Inc. (IR), headquartered in Davidson, North Carolina, is a global leader in industrial solutions, specializing in designing, producing, and distributing mission-critical flow creation and compression equipment with a market cap of $36.72 billion.

Companies valued at $10 billion or more are generally classified as "large-cap stocks," and Ingersoll Rand rightly fits into this category. The company’s diverse portfolio and focus on innovation enable it to serve a wide range of industries, delivering essential products that enhance operational efficiency and productivity globally.

IR shares are trading 10.1% below their 52-week high of $101.30, which they hit on Jul. 23. Also, the stock has declined 3.6% over the past three months, significantly underperforming the Dow Jones Industrial Average Index’s ($DOWI) 7.1% returns over the same time frame.

In the longer term, IR is up 17.7% on a YTD basis, and the shares have gained 38.5% over the past 52 weeks. The Dow has gained 9.8% in 2024 and 19.7% over the past year.

To confirm its bearish trend, IR has been trading below its 50-day moving average since early August. However, it has been trading above the 200-day moving average since early September.

Shares of Ingersoll Rand plummeted 9.1% in the following trading session after its Q2 earnings release on Jul. 31. The company reported a profit of $185 million, or $0.83 per share, surpassing Wall Street expectations of $0.77 per share. Also, its revenue came in at $1.81 billion, exceeding the analysts’ expectation of $1.78 billion. The company expects full-year earnings in the range of $3.27 to $3.37 per share.

Highlighting the contrast in performance, rival Eaton Corporation plc (ETN) has outperformed IR and the border index, with a 27%% YTD gain.

Despite IR's recent underperformance compared to the Dow, analysts are moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy" from 11 analysts in coverage. The mean price target is $100.58, which suggests a premium of 10.5% to its current levels.

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On the date of publication, Rashmi Kumari 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.

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