5 Commodity Stocks to Buy on the Dip

In this article, we discuss 5 commodity stocks to buy on the dip. If you want to see more commodity stocks in this selection, check out “Best Store of Value”: 10 Commodity Stocks to Buy on the Dip. 

5. Ingersoll Rand Inc. (NYSE:IR)

Number of Hedge Fund Holders: 31

YTD Share Price Decline as of July 8: 28.81%

Ingersoll Rand Inc. (NYSE:IR) is a North Carolina-based company that specializes in mission-critical air, fluid, energy, specialty vehicle and medical technologies in the United States, Europe, the Middle East, Africa, and the Asia Pacific. The stock has declined about 29% year to date as of July 8. In May, the company raised full-year 2022 organic revenue growth outlook by 100 bps to 8%-10%, confirming total revenue growth of 11%-13% and increasing adjusted EBITDA range to $1,385 to $1,425 million, up 16%-20% over the last year.

Barclays analyst Julian Mitchell on July 8 reiterated an Overweight rating on Ingersoll Rand Inc. (NYSE:IR) but lowered the price target on the shares to $55 from $60. The analyst likes industrial stocks that display “resilient business models”, in addition to valuations that have already been beaten down. 

According to Insider Monkey’s data, 31 hedge funds were long Ingersoll Rand Inc. (NYSE:IR) at the end of the first quarter of 2022, with combined stakes exceeding $815 million. Henry Ellenbogen’s Durable Capital Partners is the largest shareholder of the company, with approximately 5 million shares worth $248.6 million. 

Here is what Artisan Mid Cap Fund has to say about Ingersoll Rand Inc. (NYSE:IR) in its Q4 2021 investor letter:

“Ingersoll Rand is a global market leader with a broad range of mission critical flow creation technologies (pumps, compressors, etc.) for industrial and medical applications. The company’s recent Q3 results were solid and support our belief it is making the right investments in R&D and acquisitions to elevate its sustainable revenue growth rate. We have been particularly encouraged by the important role IR’s products can play in reducing the greenhouse gas intensity of manufacturing facilities. With an increasingly visible organic and acquisition-driven growth capability and further margin upside from the Gardner Denver merger, we added to our position as the market appears to be underappreciating the transformation underway at the company.”