Ingersoll Rand’s stock performance
Ingersoll Rand (IR) stock has risen 3.8% from April 1–July 8, 2016. As of July 8, the stock was trading at $65.74.
The S&P index rose 4.1% from the beginning of 2Q16 through the end of July 8, 2016. Among Ingersoll Rand’s peers in the industrial (XLI) sector are Honeywell International (HON) and Lennox International (LII). HON and LII have generated returns of 16.5% and 36%, respectively, during that period. ABB (ABB) had a return of -6.8% as of July 8, 2016, compared to the beginning of the quarter on April 1, 2016.
Ingersoll Rand stock has been impacted by macro concerns, especially in the industrial (XLI) space. Management has revised its 2016 EPS (earnings per share) guidance upward on the back of robust performance expectations for its climate segment. The company is confident it will meeting its guidance for fiscal 2016 even though it’s impacted by the slowdown in the industrial sector.
Investment in ETFs
Ingersoll Rand (IR) is part of the Guggenheim Mid-Cap Core ETF (CZA) and accounts for 2.0% of the total holdings. Investors in CZA may benefit if IR continues to surpass its enhanced EPS target for 2016.
St. Jude Medical (STJ) and Tyco International (TYC) are among the top ten holdings of CZA and account for 2.7% and 2.2%, respectively. IR has been part of the S&P 500 Index (SPY) for more than five years.
In the next part of the series, we’ll look at Ingersoll Rand’s climate segment and how it’s expected to perform in 2Q16.