Valued at a market cap of $31 billion, Ingersoll Rand Inc. (IR) is a global industrial company that provides various mission-critical air, fluid, energy, and medical technologies services and solutions. The Davidson, North Carolina-based company serves various industries, including manufacturing, life sciences, energy, and food and beverages. 

This industrial company has lagged behind the broader market over the past 52 weeks. Shares of IR have declined 11.3% over this time frame, while the broader S&P 500 Index ($SPX) has soared 10.2%. Moreover, on a YTD basis, the stock is down 14.9%, compared to SPX’s 3.9% loss. 

Narrowing the focus, IR’s underperformance looks pronounced when compared to the Industrial Select Sector SPDR Fund’s (XLI) 9.7% rise over the past 52 weeks and 2.2% uptick on a YTD basis. 

On May 1, IR released its Q1 results. The company delivered revenue of $1.7 billion, which improved 2.8% from the year-ago quarter but marginally missed the consensus estimates. Moreover, its adjusted EPS declined 7.7% year-over-year to $0.72, also falling short of forecasts by 1.4%. A drop in organic revenue and lower adjusted EBITDA margins across both of its reportable segments acted as headwinds. As a result, IR lowered its fiscal 2025 organic revenue and adjusted EPS guidance and now expects organic revenue growth between -1% and 1%, and adjusted EPS in the range of $3.28 to $3.40. 

However, despite delivering a weaker-than-expected performance, its shares closed up marginally in the following trading session. This uptick can be attributed to a strong 124.3% annual surge in its free cash flow to a Q1 record of $222.7 million, along with a robust 58.7% increase in its cash flow from operating activities. The company also reported solid organic orders growth, with a book-to-bill ratio of 1.1x, which likely helped support investor sentiment. Additionally, the announcement of a $1 billion increase to its share repurchase program might have further strengthened investor confidence.

For fiscal 2025, ending in December, analysts expect IR’s EPS to grow 2.5% year over year to $3.26. The company’s earnings surprise history is mixed. It exceeded or met the consensus estimates in three of the last four quarters, while missing on another occasion.

Among the 14 analysts covering the stock, the consensus rating is a “Moderate Buy” which is based on seven “Strong Buy,” and seven “Hold” ratings. 

The configuration has been consistent over the past three months. 

On May 5, Baird maintained an “Outperform” rating on IR but lowered its price target to $97, which indicates a 26.1% potential upside from the current levels. 

The mean price target of $97.85 represents a 27.2% potential upside from IR’s current price levels, while the Street-high price target of $124 suggests an ambitious upside potential of 61.1%.