Thursday, July 30, 2015

Seeking Alpha: Ingersoll-Rand: Good Exposures, But Not So Much Value

It has been a while since I've written on Ingersoll-Rand (NYSE:IR), in no small part because I haven't had a lot to say beyond reiterating that the company is following a more or less cogent restructuring plan and that its end-market exposures (non-residential construction and commercial vehicles) are broadly attractive. Now, though, the prospect of a sharper downturn in the industrial sector is threatening to undermine some of the progress.

Two years ago, I thought Ingersoll-Rand didn't look like a particular bargain, and the shares have risen about 16% since then - less than half the rise in the S&P 500 and well below the likes of Honeywell (NYSE:HON), Lennox (NYSE:LII), and Johnson Controls (NYSE:JCI). Dover (NYSE:DOV), too, had been an outperformer over much of that time until it was laid low by energy while Atlas Copco (OTCPK:ATLKY) shares have lagged in no small part because of its large mining exposure. Looking at Ingersoll-Rand today, I still don't see enough undervaluation to be truly interested in the shares.

Read more here:
Ingersoll-Rand: Good Exposures, But Not So Much Value

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