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Air Products and Chemicals (APD) Gains But Lags Market: What You Should Know

Air Products and Chemicals (APD) closed the most recent trading day at $288.14, moving +0.34% from the previous trading session. This move lagged the S&P 500's daily gain of 1.33%. At the same time, the Dow added 1.14%, and the tech-heavy Nasdaq gained 2.94%.

Heading into today, shares of the seller of gases for industrial, medical and other uses had gained 3.66% over the past month, lagging the Basic Materials sector's gain of 4.49% and the S&P 500's gain of 6.11% in that time.

Air Products and Chemicals will be looking to display strength as it nears its next earnings release, which is expected to be May 9, 2023. The company is expected to report EPS of $2.63, up 10.5% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.02 billion, up 2.67% from the year-ago period.

APD's full-year Zacks Consensus Estimates are calling for earnings of $11.39 per share and revenue of $13.12 billion. These results would represent year-over-year changes of +9.41% and +3.32%, respectively.

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Investors might also notice 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Air Products and Chemicals currently has a Zacks Rank of #3 (Hold).

Investors should also note Air Products and Chemicals's current valuation metrics, including its Forward P/E ratio of 25.22. This valuation marks a premium compared to its industry's average Forward P/E of 14.29.

Investors should also note that APD has a PEG ratio of 2.16 right now. 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. The Chemical - Diversified was holding an average PEG ratio of 2.16 at yesterday's closing price.

The Chemical - Diversified industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 192, putting it in the bottom 24% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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Air Products and Chemicals, Inc. (APD) : Free Stock Analysis Report

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