Why Ingersoll-Rand Will Keep Rallying

Brian D. Pacampara, The Motley Fool
Updated

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 has earned a coveted five-star ranking.

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

Ingersoll-Rand facts

Headquarters (Founded)

Dublin, Ireland (1905)

Market Cap

$14.3 billion

Industry

Industrial machinery

Trailing-12-Month Revenue

$14.1 billion

Management

Chairman/CEO Michael Lamach
CFO Steven Shawley

Return on Equity (Average, Past 3 Years)

9.5%

Cash/Debt

$929.6 million / $3.3 billion

Dividend Yield

1.3%

Competitors

Johnson Controls
Illinois Tool Works
United Technologies


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 97% of the 998 members who have rated Ingersoll-Rand believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those bulls, fellow Fool John Divine (TMFDivine), succinctly summed up the bull case for opportunity: "[Ingersoll-Rand] just announced plans to spin off its security business, bumped its dividend 31%, and announced a share buyback program. Usually spinoffs end up creating value for both the original company and the new one; I think these recent developments make the stock a long-term winner."

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. Of course, despite its five-star rating, Ingersoll-Rand may not be your top choice.

If that's the case, we've compiled a special free report for investors called "Secure Your Future With 9 Rock-Solid Dividend Stocks," which uncovers several other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

The article Why Ingersoll-Rand Will Keep Rallying originally appeared on Fool.com.

Fool contributor Brian Pacampara and The Motley Fool have no positions in the stocks mentioned above. Motley Fool newsletter services recommend Illinois Tool Works. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement