Ingersoll Rand Inc. (IR), headquartered in Davidson, North Carolina, provides mission-critical air, fluids, energy and medical technologies, services and solutions. Valued with a market capitalization of $30.3 billion, the company serves a wide range of industries, including manufacturing, oil and gas, aerospace, life sciences, food and beverage, and water treatment.
This industrial company has significantly lagged the broader market over the past 52 weeks. IR shares have fallen 21.5% during this period, while the broader S&P 500 index ($SPX) has gained 17.7%. Additionally, on a year-over-year basis, the stock is down 15.6%, compared to SPX’s 16.6% rally.
To narrow the focus, IR has also underperformed the Industrial Select Sector SPDR Fund’s (XLI) return of 14.5% over the past 52 weeks and gain of 17.7% on a year-over-year basis.
On October 30, IR reported its third quarter results and its shares plummeted 3.1% in the following trading session. The company’s revenue increased 5.1% year over year to $2 billion, beating consensus estimates by a slight margin. Meanwhile, its adjusted EPS improved 2.4% from the prior-year quarter to $0.86, meeting analyst expectations. However, a decline in organic revenue and adjusted EBITDA margin within its Industrial Technologies and Services (IT&S) segment indicated weakness in a key business area, which could have affected investor sentiment.
For the current fiscal year, which ends in December, analysts expect IR’s EPS to grow 1.3% year over year to $3.22. The company’s history of earnings surprises is mixed. It met consensus estimates in three of the last four quarters, although it missed estimates on another occasion.
Among the 15 analysts covering the stock, the consensus rating is “Moderate Buy,” which is based on seven “Strong Buy” and eight “Hold” ratings.
The configuration has remained constant for the last three months.
On October 31, Nathan Jones of Stifel Financial Corp. (SF) maintained a “Hold” rating on IR, with a price target of $79, indicating 3.5% upside potential from current levels.
The $92 average price target represents a 20.5% premium to IR’s current price levels, while the $104 Street high price target suggests an ambitious 36.3% upside potential.
On the date of publication, Neharika Jain had no (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. This article was originally published on Barchart.com