A year and a half ago, I thought that Ingersoll-Rand (NYSE:IR) looked undervalued, and the shares are up more than 70% since then. Now, to be fair, I thought Atlas Copco (OTCPK:ATLKY) was the better pick at that time, and Atlas's almost 80% rise since then isn't that
much ahead of Ingersoll-Rand, so I think this had more to do with being
generally right that the market was too worried about the long-term
future of these industrial businesses.
In any case,
Ingersoll-Rand's management has made progress in both improving the
business and shifting the sentiment. I frankly think there's been more
progress on the former than the latter, and so there could still be some
upside as investors take a more "normalized" view of the company and
its prospects (rather than always seemingly expecting something to go
wrong). The May 10 Investor Day likely isn't going to be revolutionary
for sentiment, but a clear discussion of the company's innovation and
productivity initiatives as well as its plans for capital deployment
could further strengthen that improving trend in sentiment.
Follow this link for more:
The Tide Is Turning For Ingersoll-Rand
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