Stock of the Day

October 23, 2020

Ingersoll Rand (IR)

$83.66
-$3.11 (-3.6%)
Market Cap: $34.98B

About Ingersoll Rand

Ingersoll Rand Inc. provides various mission-critical air, gas, liquid, and solid flow creation technologies services and solutions worldwide. It operates through two segments, Industrial Technologies and Services, and Precision and Science Technologies. The Industrial Technologies and Services segment designs, manufactures, markets, and services air and gas compression, vacuum, and blower products; fluid transfer equipment and loading systems; and power tools and lifting equipment, including associated aftermarket parts, consumables, air treatment equipment, controls, other accessories, and services under the under the Ingersoll Rand, Gardner Denver, Nash, CompAir, Elmo Rietschle brands, etc. The Precision and Science Technologies segment designs, manufactures, and markets diaphragm, piston, water-powered, peristaltic, gear, vane, progressive cavity, and syringe pumps; and gas boosters, hydrogen compression systems, automated liquid handling systems, odorant injection systems, controls, software, and other related components and accessories for liquid and gas dosing, transfer, dispensing, compression, sampling, pressure management, and flow control in specialized or critical applications under the Air Dimensions, Albin, ARO, Dosatron, Haskel, Ingersoll Rand, LMI, Maximus, Milton Roy, MP, Oberdorfer, Seepex, Thomas, Welch, Williams, YZ, and Zinnser Analytic brand names. This segment's products are used in medical, life sciences, industrial manufacturing, water and wastewater, chemical processing, energy, food and beverage, agriculture, and other markets. It sells through an integrated network of direct sales representatives and independent distributors. The company was formerly known as Gardner Denver Holdings, Inc. and changed its name to Ingersoll Rand Inc. in March 2020. Ingersoll Rand Inc. was founded in 1859 and is headquartered in Davidson, North Carolina.

Ingersoll Rand Bull Case

Here are some ways that investors could benefit from investing in Ingersoll Rand Inc.:

  • The current stock price of Ingersoll Rand Inc. is $85.79, which may present a buying opportunity for investors looking for value in the industrial sector.
  • Ingersoll Rand Inc. has a strong market capitalization of approximately $34.58 billion, indicating a solid position in the market and potential for growth.
  • The company reported a return on equity of 13.01%, which suggests effective management and profitability relative to shareholder equity.
  • Recent analyst ratings show a mix of buy and hold recommendations, with an average price target of $104.75, indicating potential upside for investors.
  • Ingersoll Rand Inc. has a diversified product offering in mission-critical technologies, which can help mitigate risks associated with market fluctuations.

Ingersoll Rand Bear Case

Investors should be bearish about investing in Ingersoll Rand Inc. for these reasons:

  • The company recently missed earnings expectations, reporting $0.81 per share against a consensus estimate of $0.85, which may raise concerns about its short-term performance.
  • Ingersoll Rand Inc. has a relatively high price-to-earnings (P/E) ratio of 41.85, suggesting that the stock may be overvalued compared to its earnings.
  • The company has a price-to-earnings-growth (PEG) ratio of 3.66, indicating that its growth rate may not justify its current stock price, which could deter value-focused investors.
  • Recent trading activity showed a significant drop in stock price, which could indicate volatility and uncertainty in the market.
  • Institutional investors own a large percentage (95.27%) of the company's stock, which may limit the influence of retail investors and lead to less favorable conditions for individual shareholders.

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