NYSE:IR, a strong growth stock, setting up for a breakout.

Last update: Jun 12, 2024

In this article we will dive into INGERSOLL-RAND INC (NYSE:IR) as a possible candidate for growth investing. Investors should always do their own research, but we noticed INGERSOLL-RAND INC showing up in our strong growth, ready to breakout screen, which makes it worth to investigate a bit more.

Analyzing Growth Metrics

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:IR was assigned a score of 8 for growth:

The Earnings Per Share has grown by an impressive 22.13% over the past year.
Measured over the past years, IR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.50% on average per year.
IR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.41%.
Measured over the past years, IR shows a very strong growth in Revenue. The Revenue has been growing by 20.65% on average per year.
The Earnings Per Share is expected to grow by 13.02% on average over the next years. This is quite good.
IR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.65% yearly.
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Understanding NYSE:IR's Health

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:IR was assigned a score of 7 for health:

An Altman-Z score of 4.97 indicates that IR is not in any danger for bankruptcy at the moment.
The Altman-Z score of IR (4.97) is better than 77.34% of its industry peers.
IR has a debt to FCF ratio of 2.22. This is a good value and a sign of high solvency as IR would need 2.22 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.22, IR belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
A Debt/Equity ratio of 0.27 indicates that IR is not too dependend on debt financing.
IR's Debt to Equity ratio of 0.27 is fine compared to the rest of the industry. IR outperforms 67.97% of its industry peers.
IR has a Current Ratio of 2.32. This indicates that IR is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 1.71, IR is doing good in the industry, outperforming 72.66% of the companies in the same industry.

Looking at the Profitability

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:IR has achieved a 7:

IR's Return On Assets of 5.28% is fine compared to the rest of the industry. IR outperforms 60.94% of its industry peers.
The last Return On Invested Capital (7.37%) for IR is above the 3 year average (5.30%), which is a sign of increasing profitability.
IR has a better Profit Margin (11.85%) than 80.47% of its industry peers.
In the last couple of years the Profit Margin of IR has grown nicely.
IR has a better Operating Margin (18.79%) than 86.72% of its industry peers.
IR has a Gross Margin of 42.86%. This is amongst the best in the industry. IR outperforms 83.59% of its industry peers.
In the last couple of years the Gross Margin of IR has grown nicely.

How does the Setup look for NYSE:IR

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NYSE:IR scores a 7 out of 10:

Besides having an excellent technical rating, IR also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 94.95. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 88.89, a Stop Loss order could be placed below this zone.

More Strong Growth stocks can be found in our Strong Growth screener.

Our latest full fundamental report of IR contains the most current fundamental analsysis.

For an up to date full technical analysis you can check the technical report of IR

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.