5-Star Stocks Poised to Pop: Ingersoll-Rand

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, diversified industrial firm Ingersoll-Rand (NYSE: IR  ) has earned a coveted five-star ranking.

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

Headquarters (Founded)	Dublin, Ireland (1905)
Market Cap	$12.4 billion
Industry	Industrial machinery
Trailing-12-Month Revenue	$14.86 billion
Management	Chairman/CEO Michael Lamach CFO Steven Shawley
Return on Capital (Average, Past 3 Years)	6.3%
Cash / Debt	$918.1 million / $3.68 billion
Dividend Yield	1.3%

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 97% of the 1,004 members who have rated Ingersoll-Rand believe the stock will outperform the S&P 500 going forward. These bulls include brokhernowhysher and hbomb14.

Earlier this year, brokhernowhysher noted that Ingersoll-Rand is a "well run company with a stable of well respected brand names." Our CAPS member concludes: "They have managed to do well in trying times and should lead the pack as business picks up, however slowly."

Currently, Ingersoll-Rand even sports a cheapish forward P/E of 9.4. That represents a discount to other industrial giants like ABB (NYSE: ABB  ) (12.3), General Electric (NYSE: GE  ) (10.9), and United Technologies (NYSE: UTX  ) (13.4).

CAPS member hbomb14 elaborates on the bull case:

I like IR for 3 reasons: 1) margin upside related to post-housing crisis volume leverage, cost reduction programs initiated by new-ish management, and "promises" from management for 15% OM in next couple years, 2) Buying at the trough of US resi and commercial construction cycle, 3) very strong dividend growth expected & share buyback plan. Buying on the big decline post Q2 seems like a good starting point.

What do you think about Ingersoll-Rand, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!