GDI - 2 Stocks That Soared in 2019: Buy at the High?
Heating ventilation and air conditioning (HVAC) company Ingersoll-Rand (NYSE: IR) and security lock and door company Allegion (NYSE: ALLE) have a lot in common. Not only were the once part of the same company (Allegion was spun out of Ingersoll-Rand in 2013) , but they're both also trading at all-time highs, having risen more than 40% in 2019 so far. There's a lot to like about both stocks, but should investors be chasing them higher?
To get a flavor for what's happening in 2019, here's a look at the progression of both companies' revenue and earnings outlook. Both companies have raised earnings guidance through the year, but it hasn't been accompanied by an increase in organic revenue growth expectations. In a nutshell, the companies have improved their overall revenue growth prospects because they've been growing revenue in the places that really matter.
Specifically, Ingersoll-Rand's commercial HVAC operations have exceeded expectations, as have Allegion's Americas operations. Both facts augur well for their long-term aspirations and investors, and the market has responded by aggressively buying the stocks. Here's a look at some full-year guidance figures.