Headquartered in Woking, United Kingdom, Linde plc (LIN) is a prominent player in the specialty chemicals industry. Valued at a market cap of $208.5 billion, The company provides atmospheric and process gases, including oxygen, nitrogen, argon, carbon dioxide, helium, and hydrogen, as well as electronic, specialty, and acetylene gases to various industries.
Companies worth $200 billion or more are generally described as “mega-cap stocks,” and Linde fits right into that category. Its market cap exceeds this threshold, reflecting its substantial size, stability, and influence in the basic material sector. The company, with over 50 years of hydrogen expertise, offers a diversified portfolio serving multiple industries. Its status as a dividend aristocrat, marked by 30 years of consecutive dividend increases, highlights its dedication to delivering shareholder value.
Linde, though resilient, is weathering a stormy period. The stock is down 5.8% from its 52-week high of $487.49, achieved on Oct. 17. Moreover, shares of Linde have declined 2.7% over the past three months, underperforming the S&P 500 Index’s ($SPX) 10.3% gains during the same time frame.
Moreover, in the long term, Linde lags behind the S&P 500 Index. LIN stock is up 11.9% on a YTD basis and surged 13% over the past 52 weeks, compared to $SPX’s 26.7% rise in 2024 and 33.2% gains over the past 52 weeks.
While LIN has been trading above its 200-day moving average since November-end, it has hovered below the 50-day moving average since the end of October.
On October 31, LIN shares dropped over 3% following the release of its Q3 results. The company reported $8.4 billion in revenue, a 2.5% year-over-year increase, while adjusted EPS rose 8.5% to $3.94. For the full year, LIN forecasts adjusted EPS in the range of $15.40 to $15.50.
To emphasize the stock’s underwhelming performance over the longer term, it is worth noting that Linde’s stock also trails behind its top rival, Air Products and Chemicals, Inc. (APD). APD stock has gained 21.2% over the past 52 weeks and surged 19.6% on a YTD basis.
Furthermore, analysts are reasonably bullish on the stock's outlook. Among the 20 analysts covering the stock, the consensus rating is a “Moderate Buy.” Also, its current mean price target of $508.12 suggests a potential upside of 10.6% from the prevailing price level.
