It has been a while since I've liked Ingersoll-Rand (NYSE:IR),
as I believe the shares have been buoyed by quite a bit of faith around
the Street in the company's restructuring efforts. This skepticism has
kept me on the sidelines, and with the shares down around 20% from the
time of my last article, I can't say as though I've missed out on much.
The
startling weakness in global equity markets since the start of the year
and in industrial stocks, really, since the middle of 2015 has created
some bargains provided that 2016 isn't the start of another deep or
prolonged recession. I still have a lot of quality-based issues with
Ingersoll-Rand - the company is a strong player in HVAC, but I don't
believe the company is doing much to shrink the gap with Atlas Copco (OTCPK:ATLKY)
in industrial and there's still a lot of work to be done on margins. At
this price, though, I don't think so much benefit of the doubt is baked
into the price and patient investors could see some upside from here.
Read more here:
Ingersoll-Rand Better Valued, But Not Better
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