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Here's Why It Is Worth Investing in Ingersoll Rand (IR) Stock
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Ingersoll Rand Inc. (IR - Free Report) is well-poised for growth, courtesy of the company’s solid product portfolio, innovation capabilities and focus on boosting its aftermarket businesses.
Let’s delve into the factors, which make this Zacks Rank #1 (Strong Buy) company a smart investment choice at the moment.
Business Strength: Ingersoll Rand’s Industrial Technologies & Services segment is benefiting from solid demand. The company continues to see higher orders across its product portfolio of compressors, vacuum and blowers, and power tools and lifting within the Industrial Technologies & Services unit.
Pricing actions and acquired assets are boosting revenues in the Precision & Science Technologies segment. Also, exposure to various end markets, including industrial manufacturing, mining & construction, energy, transportation, medical and laboratory sciences, food and beverage packaging as well as chemical processing, should help Ingersoll Rand offset weaknesses associated with a single market.
Expansion Efforts: IR has been strengthening its business through acquisitions. The company acquired SPX FLOW’s Air Treatment business in January 2023. The buyout boosted IR’s core compressor product offering through a complementary product portfolio of energy-efficient compressed air dryers, filters and other consumables. The Air Treatment business is currently a part of IR’s Industrial Technologies and Services segment.
The acquisition of Dosatron International (October 2022) expanded Ingersoll Rand’s digital technology portfolio, opening up opportunities in hydroponics, horticulture, animal health, food safety and sanitation along with water treatment end markets, where Dosatron had a strong presence. Dosatron is now a part of Ingersoll Rand’s Precision and Science Technologies segment. In second-quarter 2023, acquisitions contributed 5.9% to Ingersoll Rand’s total revenues. For 2023, the company anticipates mergers/acquisitions to contribute $300 million to total revenues.
Rewards to Shareholders: The company continues to increase shareholders’ value through dividend payments and share buybacks. In the first six months of 2023, the company paid out dividends of $16.2 million and repurchased shares worth $132.8 million.
Northbound Estimate Revisions: In the past 60 days, the Zacks Consensus Estimate for IR’s 2023 earnings has been revised 2.2% upward.
Price Performance: Shares of the company have gained 42% in the past year compared with the industry’s 16.3% increase.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked companies from the Industrial Products sector are discussed below:
CAT’s earnings surprise in the last four quarters was 18.5%, on average. In the past 60 days, estimates for Caterpillar’s earnings have increased 11.1% for 2023. The stock has gained 55.9% in the past year.
Eaton Corporation plc (ETN - Free Report) currently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of approximately 3%, on average.
In the past 60 days, estimates for Eaton’s earnings have increased 3.9% for 2023. The stock has soared 65.8% in the past year.
A. O. Smith Corp. (AOS - Free Report) presently carries a Zacks Rank of 2. AOS’ earnings surprise in the last four quarters was 10.5%, on average.
In the past 60 days, estimates for A. O. Smith’s earnings have increased 2.9% for 2023. The stock has gained 28.7% in the past year.
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Here's Why It Is Worth Investing in Ingersoll Rand (IR) Stock
Ingersoll Rand Inc. (IR - Free Report) is well-poised for growth, courtesy of the company’s solid product portfolio, innovation capabilities and focus on boosting its aftermarket businesses.
Let’s delve into the factors, which make this Zacks Rank #1 (Strong Buy) company a smart investment choice at the moment.
Business Strength: Ingersoll Rand’s Industrial Technologies & Services segment is benefiting from solid demand. The company continues to see higher orders across its product portfolio of compressors, vacuum and blowers, and power tools and lifting within the Industrial Technologies & Services unit.
Pricing actions and acquired assets are boosting revenues in the Precision & Science Technologies segment. Also, exposure to various end markets, including industrial manufacturing, mining & construction, energy, transportation, medical and laboratory sciences, food and beverage packaging as well as chemical processing, should help Ingersoll Rand offset weaknesses associated with a single market.
Expansion Efforts: IR has been strengthening its business through acquisitions. The company acquired SPX FLOW’s Air Treatment business in January 2023. The buyout boosted IR’s core compressor product offering through a complementary product portfolio of energy-efficient compressed air dryers, filters and other consumables. The Air Treatment business is currently a part of IR’s Industrial Technologies and Services segment.
The acquisition of Dosatron International (October 2022) expanded Ingersoll Rand’s digital technology portfolio, opening up opportunities in hydroponics, horticulture, animal health, food safety and sanitation along with water treatment end markets, where Dosatron had a strong presence. Dosatron is now a part of Ingersoll Rand’s Precision and Science Technologies segment. In second-quarter 2023, acquisitions contributed 5.9% to Ingersoll Rand’s total revenues. For 2023, the company anticipates mergers/acquisitions to contribute $300 million to total revenues.
Rewards to Shareholders: The company continues to increase shareholders’ value through dividend payments and share buybacks. In the first six months of 2023, the company paid out dividends of $16.2 million and repurchased shares worth $132.8 million.
Northbound Estimate Revisions: In the past 60 days, the Zacks Consensus Estimate for IR’s 2023 earnings has been revised 2.2% upward.
Price Performance: Shares of the company have gained 42% in the past year compared with the industry’s 16.3% increase.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked companies from the Industrial Products sector are discussed below:
Caterpillar Inc. (CAT - Free Report) presently sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks.
CAT’s earnings surprise in the last four quarters was 18.5%, on average. In the past 60 days, estimates for Caterpillar’s earnings have increased 11.1% for 2023. The stock has gained 55.9% in the past year.
Eaton Corporation plc (ETN - Free Report) currently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of approximately 3%, on average.
In the past 60 days, estimates for Eaton’s earnings have increased 3.9% for 2023. The stock has soared 65.8% in the past year.
A. O. Smith Corp. (AOS - Free Report) presently carries a Zacks Rank of 2. AOS’ earnings surprise in the last four quarters was 10.5%, on average.
In the past 60 days, estimates for A. O. Smith’s earnings have increased 2.9% for 2023. The stock has gained 28.7% in the past year.