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Why You Should Add Linde (LIN) Stock to Your Portfolio Now
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Linde plc (LIN - Free Report) is well poised for growth on the back of rising demand for oxygen. Also, its strong balance sheet and immense financial flexibility are appreciable.
Based in Guildford, the United Kingdom, Linde is a leading producer of industrial gases that are being utilized in various industries. With a market cap of $152.9 billion, the company is engaged in creating long-term value for shareholders. The stock has increased 13.5% in the year-to-date period, with more room for growth.
Estimates
The company’s bottom line for 2021 is expected to rise 26.9% year over year to $10.44 per share. Also, the top line is expected to rise 10% year over year in 2021. It beat earnings estimates in all the trailing four quarters, with an average of 8.1%.
Its primary products in industrial gases include oxygen, which is being used for life support in hospitals. With rising demand for oxygen due to the coronavirus pandemic, it is increasing production capacity at the Mims facility in Florida by 50%. The company’s process gas like hydrogen is being utilized for clean fuels, while high-purity and specialty gases are being employed for electronics manufacturing. With rising energy and products’ demand, Linde’s produced gases will generate more profits in the near future.
It delivers state-of-the-art solutions related to gas processing. It is helping the world to reduce emissions with significantly high exposure to long-term macro growth trends. It has a strong balance sheet and immense financial flexibility to invest in key growth projects.
At June quarter-end, the company’s total backlog was recorded at $7.5 billion. With its operational excellence, the company is well equipped to convert the same into cash flow. This July, it commenced operating its fifth liquid hydrogen plant in the United States. To meet mounting demand from customers, the company’s latest La Porte, TX-based plant is expected to supply 30 tons per day of high-purity liquid hydrogen.
It is committed to return capital to shareholders. Last year, the company repurchased $2,410 million in ordinary shares and paid $2,028 million dividends. On Jan 25, 2021, it received an authorization for repurchasing up to $5 billion of its ordinary shares.
Risks
Certain factors remain causes of concern. Since the third quarter of last year, there has been a steady decline in the contractual sale of gas product backlog, thereby hurting cash flow generation. Also, any significant rise in coronavirus cases poses a risk for worldwide industrial production. Nevertheless, we believe that a systematic and strategic plan of action will keep driving the company’s long-term growth.
Other Stocks to Consider
Other top-ranked players in the energy space include Extraction Oil & Gas, Inc. , Cheniere Energy, Inc. (LNG - Free Report) , and Schlumberger Limited (SLB - Free Report) , each carrying a Zacks Rank #2.
The Zacks Consensus Estimate for Extraction Oil & Gas’ bottom line for 2021 is pegged at $13.07 per share, indicating a massive improvement from last year’s loss of $2.54.
Cheniere Energy’s bottom line for third-quarter 2021 is expected to surge 239.1% year over year.
Schlumberger’s bottom line for 2021 is expected to rise 85.3% year over year.
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Why You Should Add Linde (LIN) Stock to Your Portfolio Now
Linde plc (LIN - Free Report) is well poised for growth on the back of rising demand for oxygen. Also, its strong balance sheet and immense financial flexibility are appreciable.
Based in Guildford, the United Kingdom, Linde is a leading producer of industrial gases that are being utilized in various industries. With a market cap of $152.9 billion, the company is engaged in creating long-term value for shareholders. The stock has increased 13.5% in the year-to-date period, with more room for growth.
Estimates
The company’s bottom line for 2021 is expected to rise 26.9% year over year to $10.44 per share. Also, the top line is expected to rise 10% year over year in 2021. It beat earnings estimates in all the trailing four quarters, with an average of 8.1%.
Linde plc Price and EPS Surprise
Linde plc price-eps-surprise | Linde plc Quote
Let’s take a closer look at the factors that substantiate its Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
What’s Favoring the Stock?
Its primary products in industrial gases include oxygen, which is being used for life support in hospitals. With rising demand for oxygen due to the coronavirus pandemic, it is increasing production capacity at the Mims facility in Florida by 50%. The company’s process gas like hydrogen is being utilized for clean fuels, while high-purity and specialty gases are being employed for electronics manufacturing. With rising energy and products’ demand, Linde’s produced gases will generate more profits in the near future.
It delivers state-of-the-art solutions related to gas processing. It is helping the world to reduce emissions with significantly high exposure to long-term macro growth trends. It has a strong balance sheet and immense financial flexibility to invest in key growth projects.
At June quarter-end, the company’s total backlog was recorded at $7.5 billion. With its operational excellence, the company is well equipped to convert the same into cash flow. This July, it commenced operating its fifth liquid hydrogen plant in the United States. To meet mounting demand from customers, the company’s latest La Porte, TX-based plant is expected to supply 30 tons per day of high-purity liquid hydrogen.
It is committed to return capital to shareholders. Last year, the company repurchased $2,410 million in ordinary shares and paid $2,028 million dividends. On Jan 25, 2021, it received an authorization for repurchasing up to $5 billion of its ordinary shares.
Risks
Certain factors remain causes of concern. Since the third quarter of last year, there has been a steady decline in the contractual sale of gas product backlog, thereby hurting cash flow generation. Also, any significant rise in coronavirus cases poses a risk for worldwide industrial production. Nevertheless, we believe that a systematic and strategic plan of action will keep driving the company’s long-term growth.
Other Stocks to Consider
Other top-ranked players in the energy space include Extraction Oil & Gas, Inc. , Cheniere Energy, Inc. (LNG - Free Report) , and Schlumberger Limited (SLB - Free Report) , each carrying a Zacks Rank #2.
The Zacks Consensus Estimate for Extraction Oil & Gas’ bottom line for 2021 is pegged at $13.07 per share, indicating a massive improvement from last year’s loss of $2.54.
Cheniere Energy’s bottom line for third-quarter 2021 is expected to surge 239.1% year over year.
Schlumberger’s bottom line for 2021 is expected to rise 85.3% year over year.