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Praxair Inc.

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In the last three months, Praxair's shares have outperformed the industry. In first-quarter 2018, the company's earnings and sales beat their respective estimates by 5.8% and 20.4%. For the second quarter of 2018, the company anticipates earnings to be $1.67-$1.72 per share, reflecting year-over-year growth of 14-18% and above $1.65 recorded in the first quarter. The forecast includes 5 cents of gain from the recent tax reform in the United States. Also, the company's merger with Linde will create a leading industrial gas company and is predicted to be complete in the second half of 2018. However, the company's exposure to risks arising from higher production costs, stiff competition, high debt levels, geopolitical issues and unfavorable movements in foreign currencies might adversely impact its financials in the near term. Also, the stock appears to be overvalued compared with the industry.

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