Air Products and Chemicals (APD) closed the most recent trading day at $278.59, moving -1.69% from the previous trading session. This move lagged the S&P 500's daily gain of 0.12%. Elsewhere, the Dow gained 0.13%, while the tech-heavy Nasdaq lost 4.09%.
Heading into today, shares of the seller of gases for industrial, medical and other uses had gained 2.47% over the past month, outpacing the Basic Materials sector's loss of 1.25% and lagging the S&P 500's gain of 3.98% in that time.
Air Products and Chemicals will be looking to display strength as it nears its next earnings release. In that report, analysts expect Air Products and Chemicals to post earnings of $2.91 per share. This would mark year-over-year growth of 11.07%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.28 billion, up 2.86% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.42 per share and revenue of $13.28 billion. These totals would mark changes of +9.7% and +4.58%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Air Products and Chemicals. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 has moved 0.37% higher. 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 24.82. For comparison, its industry has an average Forward P/E of 13.91, which means Air Products and Chemicals is trading at a premium to the group.
Also, we should mention that APD has a PEG ratio of 2.61. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Chemical - Diversified stocks are, on average, holding a PEG ratio of 1.44 based on yesterday's closing prices.
The Chemical - Diversified industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 157, which puts it in the bottom 38% 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 Zacks.com.
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