We have issued an updated research report on Ingersoll-Rand plc (IR - Free Report) on Aug 9.
This industrial machinery maker currently carries a Zacks Rank #3 (Hold). Its market capitalization is approximately $28.8 billion.
Below we discussed why it will be prudent for investors to hold on to this stock for now.
Factors Favoring Ingersoll-Rand
Share Price Performance, Earnings Projections: Market sentiments seem to be working in favor of the company over time. In the past six months, its share price has gained 14.2%, higher than the industry’s growth of 4.7%.
We believe that impressive financial results helped in driving sentiments for the stock. The company recorded positive earnings surprise of 2% in the second quarter of 2019. On a year-over-year basis, earnings expanded 13% on solid revenue growth, margin expansion and lower taxes.
For 2019, Ingersoll-Rand anticipates gaining from strengthening revenue performance, effective operating system and execution capabilities. Also, investments toward innovation, technology and footprint-optimization initiatives to trim costs will be beneficial. It projects adjusted earnings per share of roughly $6.40 in 2019, higher from the previously stated $6.35.
Further, the company’s earnings estimates have been raised in the past 30 days. The Zacks Consensus Estimate for its earnings is pegged at $6.39 for 2019, reflecting 0.2% growth from the 30-day-ago figure.
Ingersoll-Rand PLC (Ireland) Price and Consensus