5-Star Stocks Poised to Pop: Ingersoll-Rand


Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, diversified industrial firm Ingersoll-Rand (NYS: IR) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Ingersoll-Rand's business and see what CAPS investors are saying about the stock right now.

Ingersoll-Rand facts

Headquarters (Founded)

Dublin, Ireland (1905)

Market Cap

$12.4 billion


Industrial machinery

Trailing-12-Month Revenue

$14.86 billion


Chairman/CEO Michael Lamach
CFO Steven Shawley

Return on Capital (Average, Past 3 Years)


Cash / Debt

$918.1 million / $3.68 billion

Dividend Yield


Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 97% of the 1,004 members who have rated Ingersoll-Rand believe the stock will outperform the S&P 500 going forward. These bulls include brokhernowhysher and hbomb14.

Earlier this year, brokhernowhysher noted that Ingersoll-Rand is a "well run company with a stable of well respected brand names." Our CAPS member concludes: "They have managed to do well in trying times and should lead the pack as business picks up, however slowly."

Currently, Ingersoll-Rand even sports a cheapish forward P/E of 9.4. That represents a discount to other industrial giants like ABB (NYS: ABB) (12.3), General Electric (NYS: GE) (10.9), and United Technologies (NYS: UTX) (13.4).

CAPS member hbomb14 elaborates on the bull case:

I like IR for 3 reasons: 1) margin upside related to post-housing crisis volume leverage, cost reduction programs initiated by new-ish management, and "promises" from management for 15% OM in next couple years, 2) Buying at the trough of US resi and commercial construction cycle, 3) very strong dividend growth expected & share buyback plan. Buying on the big decline post Q2 seems like a good starting point.

What do you think about Ingersoll-Rand, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.