You can never be quite sure what investors will be
willing to just "look past"; investors seem to have taken the suspension
of 737 MAX production in stride as it concerns leading aerospace
suppliers, and likewise investors seem to not be overreacting to a noisy
quarter at Ingersoll-Rand (IR)
that was impacted by some short-cycle industrial weakness and a steep
downturn in the cyclical (but quite profitable) Thermo King business.
Given
the significance of HVAC in global energy consumption (to say nothing
of the number of people around the world who don't yet have it),
Ingersoll-Rand is not only tied to a very strong underlying multiyear
driver, but one that has an appealing ESG angle as well. This has led me
to look past some of my valuation concerns, and I still like these
shares, though I'd like them a lot more if I had the chance to buy below
$120.
Read more here:
A Few Short-Term Challenges Don't Cancel Ingersoll-Rand's Strong HVAC Results
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