Based in Allentown, Pennsylvania, Air Products and Chemicals, Inc. (APD) is a leading global provider of industrial gases and related equipment, technology, and services. With a market cap of $61.17 billion, APD serves customers in a variety of industries, including refining, chemical, metals, electronics, and manufacturing. Known for its innovative solutions and extensive portfolio, APD plays a crucial role in advancing sustainable energy solutions and industrial efficiency. As a dominant force in the industrial gas sector, Air Products competes vigorously with companies like Linde PLC (LIN), renowned for its comprehensive gas and engineering services.
Companies worth $10 billion or more are generally considered "large-cap" stocks and Air Products exemplifies this category, signifying its substantial size, stability, and dominance in the industrial gases and chemicals sector. By continually advancing its technology and expanding its portfolio of innovative solutions, APD remains a critical player in the global industrial and specialty gases market.
Shares of Air Products have dropped 10.6% from their 52-week high of $307.71, reached on Sep. 15, 2023. Over the past three months, APD's shares have gained 12.2%, outperforming the broader Nasdaq Composite ($NASX), which gained 9.7% during the same period.
In the longer term, APD has gained marginally YTD but declined 4.7% over the past 52 weeks. In comparison, the Nasdaq is up 17.8% in 2024 and 29.8% over the past year.
To confirm the recent bullish price trend, APD has been trading above its 50-day moving average since early May and its 200-day moving average since late May.
Air Products reported its second quarter fiscal 2024 results on Apr. 30. The stock marginally declined on the earnings release day, but it has remained on an uptrend since then. The company's adjusted EPS was $2.85, marking a 4% increase. The company also saw a 4% rise in adjusted EBITDA to $1.2 billion, and its adjusted EBITDA margin improved by 490 basis points to 40.9%.
Air Products maintained its full-year fiscal 2024 adjusted EPS guidance of $12.20 to $12.50, representing a 6% to 9% increase over the previous year's adjusted EPS. For the third quarter of fiscal 2024, the company provided an adjusted EPS guidance range of $3.00 to $3.05.
Highlighting the contrast in performance, rival LIN has outperformed APD, gaining 6.4% on a YTD basis. However, it lagged behind Nasdaq.
Given its recent outperformance, analysts are moderately optimistic about APD's prospects. The stock has a consensus rating of "Moderate Buy" from 19 analysts in coverage. The mean price target of $283.75 reflects a 3.1% premium over current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
