Air Products and Chemicals (APD) Dips More Than Broader Markets: What You Should Know
Air Products and Chemicals (APD) closed the most recent trading day at $274.74, moving -1.76% from the previous trading session. This change lagged the S&P 500's daily loss of 1.1%. At the same time, the Dow lost 1.19%, and the tech-heavy Nasdaq lost 3.27%.
Coming into today, shares of the seller of gases for industrial, medical and other uses had lost 0.38% in the past month. In that same time, the Basic Materials sector lost 6.89%, while the S&P 500 lost 3.02%.
Investors will be hoping for strength from Air Products and Chemicals as it approaches its next earnings release. On that day, Air Products and Chemicals is projected to report earnings of $2.63 per share, which would represent year-over-year growth of 10.5%. Meanwhile, our latest consensus estimate is calling for revenue of $3.02 billion, up 2.67% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.39 per share and revenue of $13.12 billion. These totals would mark changes of +9.41% and +3.32%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Air Products and Chemicals. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Air Products and Chemicals is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Air Products and Chemicals is currently trading at a Forward P/E ratio of 24.56. This valuation marks a premium compared to its industry's average Forward P/E of 12.61.
Meanwhile, APD's PEG ratio is currently 2.1. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. APD's industry had an average PEG ratio of 2.1 as of yesterday's close.
The Chemical - Diversified industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 173, putting it in the bottom 32% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Air Products and Chemicals, Inc. (APD) : Free Stock Analysis Report
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