Recently I published the list 10 Best Economic Recovery Stocks to Buy. In this article, we look at where Ingersoll Rand Inc. (NYSE: IR) stands up against other top economic recovery stocks.
The economic cycle, defined by economists, alternates between periods of growth, peak, recession and recovery, depending on the stage of the country’s economy. In particular, the term “economic recovery” describes the period following a recession and is characterized by improved employment, increased business activities and investment, increased consumer confidence, and accelerated GDP growth. Usually, the recovery begins after the government has enacted fiscal and monetary policies to stimulate investment and spending. The main stimulating tool in the US was the Fed’s funding rate. As the economic recovery begins, sectors that are trending outperformed are periodic sectors of consumer discretion, industry, finance and technology driven by a recovery in previously depressed valuations and a widespread acceleration of growth.
Another important consideration for investors is that the stock market and the economy are out of sync. The former tends to be positive animals. In other words, stock prices tend to rise in anticipation of an economic recovery, but the actual economic situation remains declining, reflecting GDP growth, high unemployment and slowing private spending. As a result, a key point for readers is that investments in economic recovery stocks are made between peak uncertainty and pain at or near the bottom of a market where everyone is horribly reluctant to buy. As the legendary Warrenbuffet said,
“Fear that others are greedy and others are greedy when they are afraid.”
The US economy and stock markets are the most developed in the world, and often reflect examples of economic cycle textbooks. Previous informal recession in the US occurred in 2022. This is when GDP growth recorded two-quarters of negative growth amid a rapid increase in interest rates to combat the rise. The stock market moved in sync with the economy that year. The following year, 2023, was similar to the emergence of AI Megatrend and the slow recovery fuelling its strong public spending on infrastructure and other large-scale projects. Calendars 2024 and early 2025 were similar to economic peaks as growth eased and private spending weakened. At such moments, even slight economic headwinds and uncertainty can lead to recessions and a wide range of market meltdowns. That’s exactly what happened in the new Trump 2.0 administration, which has led to a lot of uncertainty associated with public sector tariffs and rapid cuts.
While most investors are now concerned about a decline in stock prices (its benchmarks for major US stock markets have exceeded 11% as of this article since the peak in February), Smart Money is already looking for a potential recovery signal. Atlanta FED the project, where the US economy recorded negative real GDP growth in the first quarter of 2025, estimated at -2.4%. Given the continued uncertainty and tariff threats in April, the second quarter of 2025 could also be in negative territory, marking an official recession. The problem is that in these scenarios the stock market is already setting prices, making it difficult to misuse or hedge. The only plausible move at the moment is to look for stocks to recover economic recovery in an attempt to spend time at the bottom of the market. I believe there is a solid reason to believe the stock market hit a bottom in early April, and I believe things will only improve in the future.
The most important signal in favour of a potential economic recovery appears to be that Trump’s tariffs have grown as a short-term negotiation tool only and are working well in relation to most trading partners. On April 9, Trump announced a 90-day suspension with new tariffs in 75 countries until negotiations were arranged to discuss potential solutions. Here’s how CNBC journalist Kevin Breuninger commented on recent developments below:
The White House has made it clear that Trump means an announcement of a 90-day tariff “suspension.” Meanwhile, “negotiations are underway” and at the same time, “customer levels will be reduced to a universal 10% tariff.” That rest does not apply to China. This will raise US property to 125%.
The announcement is seen as an indication that the US is likely to reach an aggressive agreement with the 75 mentioned countries. The situation with China remains fierce, but things could break away if other countries reach an agreement with the US and set the stage for China. In this context, if the tariff saga is navigated successfully, the main economic headwinds could be dissipated and lead to a wide economic recovery that will increase stock prices. That being said, we may be at the right time to pick the best economic recovery stocks right now.
Is Ingersoll Rand Inc. (IR) the best economic recovery stock to buy?
A lively industrial facility with a series of chemical filtration systems on display.
Screeners were used to identify stocks with an annual growth rate (CAGR) of at least 20% revenue over the past five years. We then selected the top 10 stocks in the Upside of the largest estimated average analyst and included them in the article in ascending order. For each share, we also include the number of hedge funds that owned the shares as of the fourth quarter of 2024. Stocks are ranked according to their potential for a rise.
Why are hedge funds interested in the stocks they accumulate? The reason is simple. Our research shows that mimic the top stock picks of the best hedge funds can outperform the market. Quarterly Newsletter’s strategy was to select 14 small and large caps per quarter, returning 373.4% since May 2014, surpassing the benchmark by 218 percentage points (For more information, please see here).
Benefits of an estimated average analyst: 44.15%
Revenue CAGR last 5 years: 25.60%
Number of hedge fund holders: 39
Ingersoll Rand Inc. (NYSE:IR) is an industrial solution provider and offers a wide range of products including aviation and gas compressors, pumps, vacuum systems, and power tools for the industrial and life science markets. The company’s competitive advantage is based on its strong scale and global presence, allowing it to become a reliable supplier for businesses that rely on customized products and parts. IR is one of the best economic recovery stocks to consider, as it has a proven history of thriving during periods of accelerating industrial activity and capital expenditure. The US-based company ranked 10th on the recent list 12 highly profitable high-growth stocks in 2025.
Ingersoll Rand Inc. (NYSE:IR) delivered strong performance in 2024 with double-digit adjusted EPS growth and robust free cash flow margin despite a dynamic global market environment. The company achieved a record-setting adjusted EBITDA margin of 27.9%, up 190 basis points from the previous year, but the full year adjusted EPS ended at $3.29 per share, representing a previous increase of 11%. Total company orders increased by 4%, revenues increased by 5% for the full year, with a bookkeeping ratio of 0.98, indicating a deep pipeline of orders aimed at customers.
Looking forward to 2025, Ingersoll Rand Inc. (NYSE: IR) has a total revenue growth of 3% to 5%, and organic growth of 1% to 3%. The M&A pipeline remains strong, with over 200 companies in the funnels. The company has shown continued success in its acquisition strategy, showing its annual revenue of approximately $625 million less than 14 times its 18 acquisitions in 2024. In particular, the company maintains a strong balance sheet of total liquidity of $4.1 billion. This includes $1.5 billion in cash that is on the quarterly margin.
Overall, IR 9th place On the list of the best economic recovery stocks to buy. While we acknowledge the potential of IR investments, our belief lies in the belief that AI stocks provide higher returns and hold a greater commitment to doing so within a shorter time frame. There have been AI stocks that have risen since the beginning of 2025, and the popular AI stocks have lost around 25%. If you’re looking for AI stocks that are more promising than IR but trade less than 5 times the revenue, check out our report on this Cheapest AI stocks.
