Zacks Investment Research upgraded
) to a Zacks Rank #2 (Buy) from a Zacks Rank #3 (Hold) on Jul 11,
2014, on account of upward estimate revisions in response to
healthy guidance by the company for the coming quarters.
Why the Upgrade?
The industrial goods manufacturer reported adjusted first-quarter
earnings of 29 cents per share, comfortably beating the Zacks
Consensus Estimate of 25 cents. Ingersoll also recorded robust
revenues, in spite of harsh winter conditions and slack industrial
markets. Furthermore, the company's guidance for the coming
quarters boosted investors' confidence.
In spite of moderate growth conditions in the construction and
industrial markets, the company expects healthy revenue growth of
4-5% for the second quarter. Ingersoll projects adjusted earnings
per share (EPS) for the quarter to lie in the range of $1.09 to
$1.13, reflecting strong sequential growth.
The company, boasting a solid balance sheet, has consistently
returned significant cash to its shareholders through share
repurchase and dividends over the last three years. Ingersoll has
recently been undergoing restructuring and streamlining operations
to reduce costs and boost profitability.
Part of its strategy has been to divest underperforming businesses
and focus on high-growth operations. The company spun off its
commercial and residential security business,
) in Dec 2013, intending to focus on its industrial, refrigeration
and heating, and ventilation and air-conditioning (HVAC)
businesses. The company is expected to build upon its healthy order
book as industrial markets pick up pace, with climate orders
offering strong potential in the coming quarters.
Ingersoll has seen the Zacks Consensus Estimate for the current
year move up by 2 cents to $3.19 over the past one month. It has
witnessed upward estimate revisions for 2015 also, which helped the
Zacks Consensus Estimate to rise from $3.81 to $3.84 over the past
Other Stocks to Consider
Other stocks in the industry that are worth a mention include
Blount International Inc.
EnPro Industries, Inc.
), both sporting a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
INGERSOLL RAND (IR): Free Stock Analysis Report
ENPRO INDUS INC (NPO): Free Stock Analysis
BLOUNT INTL (BLT): Free Stock Analysis Report
ALLEGION PLC (ALLE): Free Stock Analysis Report
To read this article on Zacks.com click here.