Hot Stock Tips, Stock Market Tips – Ingersoll-Rand (IR)

Posted on 02 October 2011

Hot Stock Tips – Ingersoll-Rand (IR): It was a rough end of the week for Ingersoll-Rand owners, as their stock plummeted to two-year lows. However, for this week, our expert stock advisors are suggesting that now is the time to buy into this stock and hope for the best, both in the short run and in the long term.

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Ingersoll-Rand provides air conditioners and lock, mostly to the American public. This is a company that has been around for a tremendous amount of years, and it is one of those blue collared American companies that has absolutely no fear of totally going bankrupt any time in the near future.

Sure, the industrial market has taken an absolute beating over the course of the last few weeks, and that has been the sector that has really caused the massive decline in the DOW Jones and the S&P 500. Many pundits think that this is going to be an ongoing trend, especially in this industry as 3rd quarter earnings reports begin to come out.

Those reports for Ingersoll-Rand aren’t expected to be good when they come out, but there has already been a huge compensation for its losses. Investors are expecting low consumer reports to drop this company’s profit down to 77 cents to 80 cents per share, which is quite a ways off from the 91 cents per share that the company was hoping for.

However, the market has just totally been overcompensated due to this already. On Friday alone, shares of IR went down from almost $32 per share to close at $28.09. The stock hit a 52 week low at $26.13 before rebounding nearly $2.00 per share at the end of the day rally. That being said, the prudent buyer of this stock got in while it was still in the $26-$27 per share range, a dramatic one day swing.

Friday’s drop of over 12 percent was the biggest one day drop this stock has had since “Black Monday” in 1987.

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That being said, we absolutely still see some value in this stock. Thompson Reuters still considers this a positive trending stock, while Standard & Poor’s still has it ranked as a *** stock.

When the market dropped out, Ingersoll-Rand stock could be had at as low as $11 per share. That number has obviously still rebounded, but the high point of this stock was in the $52 range over the course of the last year, and the company hadn’t gotten back to its high point of around $57 per share in 2007.

With Ingersoll-Rand, you’re also getting a relatively tiny dividend. No, the estimated 1.71 percent dividend yield isn’t lighting the world on fire, but just the fact that this company is still paying out dividends, something that most aren’t doing any longer. That dividend will more than make up any slight losses that this stock may have in the months to come, but we do think that this is a stock that is going to rebound this week and get back into the $30 per share range, where it will likely level off once again.