Here's Why You Should Hold on to Ingersoll Rand (IR) Stock
Ingersoll Rand Inc. IR is poised to gain from strength in the company’s food, life science, water and clean energy businesses despite headwinds from logistics and direct material cost inflation and supply-chain challenges.
Ingersoll Rand’s Industrial Technologies & Services segment is benefitting from its robust product portfolio of compressors, industrial vacuum and blowers and power tools. Strengthening air dimensions business is driving its Precision & Science Technologies segment.
The company has been strengthening and expanding its businesses through asset additions for a while. It completed the acquisition of SPX FLOW’s Air Treatment business in January 2023. The buyout boosted its core compressor product offering through a complementary product portfolio of energy-efficient compressed air dryers, filters and other consumables.
The Air Treatment business is a part of IR’s Industrial Technologies and Services (IT&S) segment. The buyout of Dosatron International (October 2022) expanded its digital technology portfolio, opening up opportunities in hydroponics, horticulture, animal health, food safety along with sanitation and water treatment end markets. IR’s September 2022 acquisition of Westwood Technical Limited expanded its IIoT offerings with Westwood Technical’s Aircom product line.
Ingersoll Rand’s measures to reward shareholders through dividends and share buybacks are noteworthy. In the first nine months of 2022, IR paid out dividends worth $24.3 million and repurchased treasury stocks worth $257.8 million. The dividend rate was hiked by 7% in February 2022.
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In light of the above-mentioned positives, we believe, investors should hold on to the Ingersoll Rand stock for now, as suggested by its current Zacks Rank #3 (Hold). In the past six months, the stock has rallied 44% compared with the industry’s 27.4% increase.
Stocks to Consider
Some better-ranked companies from the Industrial Products sector are discussed below:
Xylem Inc. XYL presently holds a Zacks Rank #2 (Buy). XYL’s earnings surprise in the last four quarters was 13.3%, on average. You can see the complete list of today’s Zacks #1 Rank stocks.
In the past 60 days, Xylem’s earnings estimates have increased 0.1% for 2022. The stock has gained 54% in the past six months.
MRC Global Inc. MRC presently has a Zacks Rank of 2. MRC’s earnings surprise in the last four quarters was 103%, on average.
In the past 60 days, MRC Global’s earnings estimates have increased 0.1% for 2022. The stock has gained 23.6% in the past six months.
EnerSys ENS delivered an average four-quarter earnings surprise of 2.1%. ENS presently carries a Zacks Rank of 2.
ENS’ earnings estimates have increased 0.6% for fiscal 2023 in the past 60 days. The stock has gained 41.1% in the past six months.
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Ingersoll Rand Inc. (IR) : Free Stock Analysis Report
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Enersys (ENS) : Free Stock Analysis Report
Xylem Inc. (XYL) : Free Stock Analysis Report
