Back to top

Analyst Blog

Industrial goods manufacturer Ingersoll-Rand Plc (IR - Analyst Report) reached a new 52-week high of $57.43 on Dec 13, following the latest spin-off of its commercial and residential security businesses on Dec 2. Shares of Ingersoll eventually closed at $56.82 on Dec 13. Ingersoll earlier reached a 52-week high of $71.22 on Nov 27.

The company’s long-term estimated earnings per share growth rate is 11.34%. Average volume of shares traded over the last three months came in at approximately 2,938K.

Growth Drivers

On Dec 2, Ingersoll completed the spin-off of its commercial and residential security businesses into a separate standalone company. Ingersoll will not have any stake in this new company, which has been listed on New York Stock Exchange as Allegion plc (ALLE - Analyst Report). Allegion shares were distributed on Dec 1, 2013, with Ingersoll Rand shareholders receiving one Allegion share for every three Ingersoll Rand shares held at the close of business as of the record date of Nov 22, 2013.

The spin-off is expected to unlock value for the company’s shareholders. The changes made will enable Ingersoll to strengthen its focus on core businesses. The restructuring initiative is aimed at growth, implementation of business operating system and reducing complexity and overhead cost to facilitate long-term growth and improve margin.

Earlier in Oct 18, the company delivered solid third-quarter 2013 results beating the Zacks Consensus Estimate on both revenues and earnings. Adjusted earnings stood at $1.16, beating the Zacks Consensus Estimate by 7.4%. Moreover, both revenues and earnings grew year over year. All the four segments of the company - Climate Solutions, The Industrial Technologies, Residential Solutions and The Security Technologies - reported year-over-year growth in revenues.

Ingersoll has a strong base in major markets including air conditioning systems and services (Trane), transport refrigeration (Thermo King), door hardware (Schlage) and industrial technologies (Club Car). A foothold in these markets together with its solid foundation of global brands has enabled the company to outperform even in this competitive environment. Ingersoll currently has a Zacks Rank #3 (Hold).

Other Stocks to Consider

Other better-ranked stocks in the industry include Xylem Inc. (XYL - Analyst Report) and Flowserve Corp. (FLS - Analyst Report). While Xylem has a Zacks Rank #1 (Strong Buy), Flowserve carries a Zacks Rank #2 (Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 3.00 +3.09%
SANCHEZ ENE… SN 34.18 +2.67%
THE PANTRY… PTRY 21.02 +2.09%
INTEL CP INTC 35.15 +1.88%
CLAYTON WIL… CWEI 117.30 +1.78%