Air Products and Chemicals (APD) Outpaces Stock Market Gains: What You Should Know


Air Products and Chemicals (APD) closed the most recent trading day at $319.51, moving +1.62% from the previous trading session. This change outpaced the S&P 500’s 1.43% gain on the day. Elsewhere, the Dow gained 1.58%, while the tech-heavy Nasdaq added 0.03%.

Coming into today, shares of the seller of gases for industrial, medical and other uses had gained 9% in the past month. In that same time, the Basic Materials sector gained 8.89%, while the S&P 500 gained 5.12%.

Wall Street will be looking for positivity from Air Products and Chemicals as it approaches its next earnings report date. In that report, analysts expect Air Products and Chemicals to post earnings of $2.72 per share. This would mark year-over-year growth of 7.94%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.29 billion, up 9.96% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.38 per share and revenue of $13.21 billion. These totals would mark changes of +9.32% and +4.06%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Air Products and Chemicals. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.1% lower. Air Products and Chemicals is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Air Products and Chemicals currently has a Forward P/E ratio of 27.63. For comparison, its industry has an average Forward P/E of 9.84, which means Air Products and Chemicals is trading at a premium to the group.

It is also worth noting that APD currently has a PEG ratio of 2.27. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. APD’s industry had an average PEG ratio of 1.72 as of yesterday’s close.

The Chemical – Diversified industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 221, putting it in the bottom 13% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow APD in the coming trading sessions, be sure to utilize

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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