Ingersoll (IR) Soars 9.8%: Is Further Upside Left in the Stock?

Ingersoll Rand Inc. IR shares ended the last trading session 9.8% higher at $73.32. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 19.5% loss over the past four weeks.

Ingersoll Rand’s rally is driven by President Trump’s announcement of a 90-day pause on tariffs for most countries. This move is aimed to stabilize markets and address global trade concerns.

This maker of flow control and compression equipment is expected to post quarterly earnings of $0.74 per share in its upcoming report, which represents a year-over-year change of -5.1%. Revenues are expected to be $1.74 billion, up 4% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Ingersoll, the consensus EPS estimate for the quarter has been revised marginally lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on IR going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Ingersoll belongs to the Zacks Manufacturing - General Industrial industry. Another stock from the same industry, Generac Holdings (GNRC), closed the last trading session 12.5% higher at $114.65. Over the past month, GNRC has returned -22.4%.

For Generac Holdings

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This article originally published on Zacks Investment Research (zacks.com).

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