An investment fund believes industrial giant Ingersoll Rand (NYSE:IR) is poised for significant growth, potentially outperforming the market as the manufacturing sector recovers.
Parnassus Investments highlighted Ingersoll Rand in its Q4 2025 investor letter, suggesting the company is well-positioned to capitalise on an expected upswing in US manufacturing. The Parnassus Mid Cap Fund, which saw a 1.17% return in Q4 2025, exceeding the Russell Midcap Index’s 0.16%, believes that mid-cap stocks could drive the market forward if economic growth continues beyond the artificial intelligence sector. The fund is optimistic about 2026, believing its portfolio of strong companies can offer protection if the market declines.
Ingersoll Rand, a major player in compressed air systems and fluid management products, is anticipated to benefit from a recovery in industrial activity. This recovery is predicted to be spurred by the Federal Reserve lowering interest rates and the progression of large construction projects. The fund suggests that this scenario could lead to accelerated revenue growth for Ingersoll Rand.
However, the stock has faced recent headwinds. As of March 30, 2026, Ingersoll Rand shares closed at $76.94, with a one-month return of -15.95% and a 52-week loss of 4.55%. The company’s market capitalisation currently stands at $30.13 billion.
Despite Parnassus Investments’ optimism, data indicates a mixed sentiment among hedge funds. At the end of Q4 2025, 37 hedge fund portfolios held Ingersoll Rand, a decrease from 46 in the previous quarter.
While acknowledging Ingersoll Rand’s potential, some analysts suggest that certain AI stocks may offer greater upside with less risk.
Parnassus Mid Cap Fund’s Performance
| Period | Fund Return (Net of Fees) | Russell Midcap Index Return |
|---|---|---|
| Q4 2025 | 1.17% | 0.16% |
| Year-to-Date 2025 | 12.85% | 10.60% |
