Based on the aggregated intelligence of 115,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, industrial manufacturer Ingersoll-Rand (NYSE: IR) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.
With that in mind, let's take a closer look at Ingersoll-Rand's business and see what CAPS investors are saying about the stock right now.
Ingersoll-Rand facts
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Headquarters (Founded)
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Montvale, N.J. (1905)
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Market Cap
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$10.87 Billion
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Industry
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Industrial Machinery
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Trailing-12-Month Revenue
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$9.81 Billion
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Management
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CEO Herbert Henkel (Since April 1999)
CFO Steven Shawley (Since June 2008)
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Return on Equity (Average, Past Three Years)
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12.8%
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Competitors
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Caterpillar (NYSE: CAT)
Dover (NYSE: DOV)
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CAPS Members Bullish on IR Also Bullish on:
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Apple (Nasdaq: AAPL),
Vale (NYSE: RIO)
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CAPS Members Bearish on IR Also Bearish on:
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Bank of America (NYSE: BAC)
Citigroup (NYSE: C)
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Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
Over on CAPS, 185 of 188 of the All-Star members who have rated Ingersoll-Rand -- some 98% -- believe the stock will outperform the S&P 500 going forward. These All-Star bulls include udflyerz and my fellow Fool TMFJake, both of whom are ranked in the top 10% of our community.
In July, udflyerz looked at Ingersoll-Rand and reminded our community:
Buffett owns it and recently added more. Plus half the short interest recently covered, suggesting [it's] close to a bottom. Looks like a good value for the long term.
A pitch three weeks later from TMFJake shared that contrarian attitude. He highlighted a few of the stock's cheapish ratios, which remain relatively unchanged:
Attractive fundamentals and buying on the low end of the 52-week trading range:
Price-to-Earnings (TTM): 2.7
Price-to-Sales (TTM): 1.1
LT Debt-to-Equity Ratio: .09 ...
Really it all comes down to whether or not the Trane buyout is managed effectively. Henkel is clearly executing his turnaround plan, and, even though the housing market is still adrift, Ingersoll-Rand has plenty of growth potential in its industrial and security product lines. I'm betting we see outperformance from here.
What do you think about Ingersoll-Rand, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 115,000 investors are waiting to hear what you have to say. CAPS is 100% free, so why not get started?
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