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Ingersoll (IR) Stock Jumps 5.7%: Will It Continue to Soar?

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Ingersoll Rand Inc. (IR - Free Report) shares soared 5.7% in the last trading session to close at $48.57. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 16.8% loss over the past four weeks.

Ingersoll Rand’s rally is primarily driven by optimism regarding the company’s strong momentum in the medical, dosatron and specialty business units. Solid demand for the company’s vacuum pumps, blowers and compressors, along with its focus on boosting aftermarket business, bodes well.

This maker of flow control and compression equipment is expected to post quarterly earnings of $0.45 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $1.31 billion, down 4.5% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Ingersoll, the consensus EPS estimate for the quarter has been revised 4.9% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on IR going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Ingersoll is a member of the Zacks Manufacturing - General Industrial industry. One other stock in the same industry, Graco Inc. (GGG - Free Report) , finished the last trading session 3.4% higher at $69.70. GGG has returned -7.6% over the past month.

For Graco Inc., the consensus EPS estimate for the upcoming report has changed -2% over the past month to $0.63. This represents a change of +8.6% from what the company reported a year ago. Graco Inc. currently has a Zacks Rank of #3 (Hold).


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