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Ingersoll (IR) Hits 52-Week High on Core Business Focus
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Shares of industrial goods manufacturer Ingersoll-Rand Plc (IR - Free Report) scaled a new 52-week high of $83.12 during yesterday’s trading session. It closed the session a notch lower at $81.87 for a solid one-year return of 37.4%. Barring minor hiccups, the company’s share price has steadily been on an uptrend since January. This Zacks Rank #2 (Buy) stock has the potential for further price appreciation with long-term earnings growth expectations of 8.1%.
Growth Drivers
Ingersoll continues to focus on improving the efficiencies and capabilities of products and services within its core businesses. The company also has a solid foundation of global brands and leading market share in all major product lines. The geographic and industry diversity coupled with a large installed product base provide ample growth opportunities within service, spare parts and replacement revenue streams. Additionally, the company’s complementary portfolio of products and services is likely to assist it in strengthening the market position and achieving high productivity.
Ingersoll outperformed the Zacks categorized Machinery-General Industrial sector in the last three months, with an average return of 9.1% compared with 6.3% gain for the latter. In order to further improve its growth curve, Ingersoll is concentrating on its strategic priorities. These include a disciplined capital allocation, strong and flexible balance sheet position and cash flows enhancement to support dividend growth. The structural changes in the company are further expected to unlock additional value. We believe that such moves along with its robust operating platform and an efficient management team will help in the execution of these strategic priorities and drive net asset value and dividend growth in the future as well.
For full-year 2017, management offered a relatively bullish guidance. The company anticipates organic revenues to improve 3% while reported revenues are expected to be up 2% year over year. Ingersoll expects adjusted earnings from continuing operations to be in the range of $4.30–$4.50 per share, representing year-over-year growth of 4–9%. Such bullish outlook portrays favorable growth dynamics, which has probably driven the company’s shares to a fresh 52-week high.
Altra Industrial Motion is currently trading at a forward P/E of 20.9x.
Graco has a long-term earnings growth expectation of 10.3%.
Illinois Tool Works has a long-term earnings growth expectation of 7.5%. It topped estimates in each of the trailing four quarters with an average earnings surprise of 2.2%.
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Ingersoll (IR) Hits 52-Week High on Core Business Focus
Shares of industrial goods manufacturer Ingersoll-Rand Plc (IR - Free Report) scaled a new 52-week high of $83.12 during yesterday’s trading session. It closed the session a notch lower at $81.87 for a solid one-year return of 37.4%. Barring minor hiccups, the company’s share price has steadily been on an uptrend since January. This Zacks Rank #2 (Buy) stock has the potential for further price appreciation with long-term earnings growth expectations of 8.1%.
Growth Drivers
Ingersoll continues to focus on improving the efficiencies and capabilities of products and services within its core businesses. The company also has a solid foundation of global brands and leading market share in all major product lines. The geographic and industry diversity coupled with a large installed product base provide ample growth opportunities within service, spare parts and replacement revenue streams. Additionally, the company’s complementary portfolio of products and services is likely to assist it in strengthening the market position and achieving high productivity.
Ingersoll outperformed the Zacks categorized Machinery-General Industrial sector in the last three months, with an average return of 9.1% compared with 6.3% gain for the latter. In order to further improve its growth curve, Ingersoll is concentrating on its strategic priorities. These include a disciplined capital allocation, strong and flexible balance sheet position and cash flows enhancement to support dividend growth. The structural changes in the company are further expected to unlock additional value. We believe that such moves along with its robust operating platform and an efficient management team will help in the execution of these strategic priorities and drive net asset value and dividend growth in the future as well.
For full-year 2017, management offered a relatively bullish guidance. The company anticipates organic revenues to improve 3% while reported revenues are expected to be up 2% year over year. Ingersoll expects adjusted earnings from continuing operations to be in the range of $4.30–$4.50 per share, representing year-over-year growth of 4–9%. Such bullish outlook portrays favorable growth dynamics, which has probably driven the company’s shares to a fresh 52-week high.
Other Stocks to Consider
Some other top stocks in the industry include Altra Industrial Motion Corp. , Graco Inc. (GGG - Free Report) and Illinois Tool Works Inc. (ITW - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Altra Industrial Motion is currently trading at a forward P/E of 20.9x.
Graco has a long-term earnings growth expectation of 10.3%.
Illinois Tool Works has a long-term earnings growth expectation of 7.5%. It topped estimates in each of the trailing four quarters with an average earnings surprise of 2.2%.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>