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Valued at a market cap of $31.9 billion, Ingersoll Rand Inc. (IR) provides various mission-critical air, fluid, energy, and medical technologies services and solutions. The Davidson, North Carolina-based company serves a wide range of industries, including manufacturing, energy, life sciences, and food & beverage.
Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and Ingersoll Rand fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the specialty industrial machinery industry. The company's strength lies in its broad portfolio of mission-critical industrial solutions and its strong global service network, which ensures consistent aftermarket revenue. The company is well-regarded for its reliability, energy-efficient technologies, and customer-centric approach, making it a trusted partner across industries.
Despite its notable strength, this specialty industrial machinery provider has slipped 24.3% from its 52-week high of $106.03, reached on Nov. 25, 2024. Moreover, shares of IR have declined 5.3% over the past three months, considerably underperforming the Nasdaq Composite’s ($NASX) 11% return during the same time frame.
In the longer term, IR has fallen 8.9% over the past 52 weeks, significantly lagging behind NASX's 28.6% uptick over the same time period. Moreover, on a YTD basis, shares of IR are down 11.3%, compared to NASX’s 13.3% surge.
To confirm its bearish trend, IR has been trading below its 200-day moving average since mid-December 2024, with slight fluctuations, and has remained below its 50-day moving average since early August.
On Jul. 31, Ingersoll Rand delivered its Q2 earnings results. The company’s revenue grew 4.6% year-over-year to $1.9 billion, coming in 2.7% ahead of the consensus estimates. Meanwhile, its adjusted EPS of $0.80 also met the analyst forecast. Additionally, IR raised its fiscal 2025 guidance, now projecting revenue growth of 4% to 6%, and adjusted EPS to be between $3.34 and $3.46. Yet, its shares tumbled 11.4% in the following trading session. A 3.6% year-over-year decline in adjusted EPS and a 40-basis point drop in adjusted EBITDA margin may have raised investor concerns over profitability. Its free cash flow also decreased by a notable 25.7% from the prior-year quarter, further weighing on investor sentiment.
IR has also lagged behind its rival, Illinois Tool Works Inc. (ITW), which gained 6.1% over the past 52 weeks and 3.6% on a YTD basis.
Despite IR’s recent underperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 15 analysts covering it, and the mean price target of $90.92 suggests a 13.3% potential upside from its current price levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
