Is NYSE:IR on the Verge of a Major Breakout as a Strong Growth Stock?

In this article, we'll take a closer look at INGERSOLL-RAND INC (NYSE:IR) as a potential candidate for growth investing. While it's important for investors to conduct their own research, INGERSOLL-RAND INC has piqued our interest by appearing on our strong growth and breakout radar. Let's explore further.

Evaluating Growth: NYSE:IR

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:

• IR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.13%, which is quite impressive.
• IR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.50% yearly.
• 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.
• IR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.77% yearly.
• IR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.51% 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 Score

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:IR, the assigned 7 for health provides valuable insights:

• IR has an Altman-Z score of 5.28. This indicates that IR is financially healthy and has little risk of bankruptcy at the moment.
• IR has a Altman-Z score of 5.28. This is in the better half of the industry: IR outperforms 77.52% 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.
• IR's Debt to FCF ratio of 2.22 is amongst the best of the industry. IR outperforms 80.62% of its industry peers.
• A Debt/Equity ratio of 0.27 indicates that IR is not too dependend on debt financing.
• Looking at the Debt to Equity ratio, with a value of 0.27, IR is in the better half of the industry, outperforming 65.89% of the companies in the same industry.
• 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.
• Looking at the Quick ratio, with a value of 1.71, IR is in the better half of the industry, outperforming 71.32% of the companies in the same industry.

Evaluating Profitability: NYSE:IR

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:IR has earned a 7 out of 10:

• 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.
• The Profit Margin of IR (11.85%) is better than 79.84% of its industry peers.
• In the last couple of years the Profit Margin of IR has grown nicely.
• IR has a Operating Margin of 18.79%. This is amongst the best in the industry. IR outperforms 86.05% of its industry peers.
• IR has a better Gross Margin (42.86%) than 82.95% of its industry peers.
• In the last couple of years the Gross Margin of IR has grown nicely.

Why is NYSE:IR a setup?

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, NYSE:IR has a 8 as its setup rating, indicating its current consolidation status.

IR has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. A pullback is taking place, which may present a nice opportunity for an entry. There is very little resistance above the current price. There is a support zone below the current price at 98.35, a Stop Loss order could be placed below this zone.

Every day, new Strong Growth stocks can be found on ChartMill 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.