Ingersoll Rand’s Market Performance: A Mixed Bag Amid Industry Pressures
Ingersoll Rand Inc. (IR), boasting a market capitalization of $37.3 billion, is an industrial powerhouse focused on crucial flow creation technologies. The company operates in two primary segments: Industrial Technologies & Services, which includes air compressors, vacuum pumps, and power tools, and Precision & Science Technologies, offering specialized pumps and flow control systems aimed at medical, life sciences, and industrial markets.
Stock Trajectory: Challenges and Gains
Over the last 52 weeks, IR’s stock performance has not kept pace with the broader market. The company has increased by 10.8%, while the S&P 500 Index ($SPX) has soared by 21.6%. In a year-to-date comparison, IR has shown a modest 2.6% gain, which is slightly better than the SPX’s 2.5% increase.
Comparative Performance with Industry Peers
Delving deeper, the Davidson, North Carolina-based company has underperformed in relation to the Industrial Select Sector SPDR Fund’s (XLI) remarkable 18.6% return over the same 52-week period, as well as a near 4% YTD increase.
Recent Earnings Report: Mixed Results
On Oct. 31, when Ingersoll Rand reported better-than-expected Q3 adjusted earnings of $0.84, shares fell by 2.1% the following day. Revenues of $1.9 billion fell short of expectations, indicating weaker demand, especially in the air compressor sector. Additionally, the company adjusted its full-year revenue growth outlook down to 5% – 7%, as inflation-related material costs and ongoing supply chain difficulties continued to raise red flags for investors, despite the positive earnings surprise.
Future Earnings Outlook
Looking ahead to fiscal 2024, which concludes in December, analysts predict a 12.3% year-over-year EPS growth to $3.20. Encouragingly, Ingersoll Rand has a history of beating consensus earnings estimates, having surpassed them in the last four quarters.
Analyst Ratings and Price Targets
According to 14 analysts tracking this stock, the consensus rating is a “Moderate Buy,” backed by seven “Strong Buy” ratings and seven “Holds.” On Jan. 16, Jefferies analyst Stephen Volkmann reasserted a “Buy” recommendation for Ingersoll Rand with a price target of $120.
Investment Potential
Currently, IR is trading below the average price target of $107.69. The highest price target on the Street is $124, suggesting a potential upside of 33.1% from current price levels.
On the date of publication, Sohini Mondal 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.
More news from Barchart
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
