Ingersoll Rand Outlook - Weak Technicals and Mixed Analyst Signals

Market Snapshot: Caution Advised as Technicals Deter Investors

The technical outlook for Ingersoll Rand (IR) is currently weak, with three bearish indicators and no bullish ones to support a positive move. Our internal diagnostic score is 2.32, suggesting it may be best to avoid the stock at this time.

News Highlights: Industry Trends and Policy Shifts to Watch

• Farm Machinery Industry Recovery: Farm machinery sales in Brazil showed a 12% increase in revenue from November 2024 to February 2025. This indicates a modest sector recovery, potentially relevant to Ingersoll Rand’s agricultural equipment division.
• U.S. COVID-19 Vaccine Policy Changes: The U.S. Department of Health and Human Services has revised how vaccines are approved and recommended. These changes could indirectly affect industries reliant on global supply chains or regulatory environments.
• Uranium Mining Under Trump: President Trump has fast-tracked uranium mine approvals in Utah, signaling a potential industry revival. However, analysts note that higher prices are likely needed before a full recovery is seen.

Analyst Views & Fundamentals

Four institutions have provided recent ratings for IR, with a simple average rating score of 3.50 and a performance-weighted rating of 3.33. The ratings are evenly split: two "Buy" and two "Neutral". This consistency suggests a cautious but not overly bearish outlook from analysts.

Despite this, the stock has experienced a 1.81% decline in its recent price trend, suggesting that market expectations are not aligning with the current performance.

Key fundamental values include:

• EV/EBIT: 148.57 – High valuation
• PE Ratio: -143.27 – Indicates earnings challenges
• Operating Revenue Growth: 3.72% – Positive momentum
• Basic EPS Growth: -81.25% – Sharp decline in earnings
• Cash Flow from Operations: 0.36 – Low operational liquidity
• Cash-MV: -0.32 – Cash position appears to be weakening

Our proprietary fundamental score is 1.8, indicating room for improvement in both profitability and liquidity.

Money-Flow Trends: Big Money Still Entering, Retailers Split

Despite the weak technical outlook, money-flow patterns show a positive trend overall. The fund-flow score is 7.96, with large and extra-large investors showing a 50.89% inflow ratio, suggesting continued institutional confidence.

Small retail investors are also showing mixed behavior, with a 50.07% inflow ratio. This suggests that while big money continues to favor IR, retail sentiment is less unified and may reflect broader market uncertainty.

Key Technical Signals: Bearish Momentum Dominates

Recent technical indicators are mixed, with conflicting signals from overbought and oversold conditions:

• WR Overbought: Internal diagnostic score of 2.49 – Suggesting caution despite short-term bullish potential.
• WR Oversold: Internal diagnostic score of 3.15 – Indicating some potential for a rebound, though not strongly supported.
• Dividend Payable Date: Internal diagnostic score of 1.31 – A clear bearish trigger, with limited historical success.

Recent chart patterns from the past five days include two instances of WR Oversold and WR Overbought, as well as a Dividend Payable event. This volatility suggests the stock is still in a phase of consolidation and caution is warranted.

According to key insights, the market is in a weak state, with bearish signals dominating and limited recent momentum. This supports the recommendation to avoid the stock for now.

Conclusion: Consider Waiting for a Pull-Back

With a technical score of 2.32 and bearish signals dominating the chart, investors should consider avoiding IR for now. While analyst sentiment is mixed and big money is still showing interest, the fundamentals and technicals do not align to support a strong buy case.

If you’re watching the stock, keep an eye on upcoming earnings and any developments in its cash flow and earnings growth. Until then, a wait-and-see approach may be the most prudent.