Air Products and Chemicals (
APD Quick Quote APD - Free Report) closed the most recent trading day at $238.52, moving -1.22% from the previous trading session. This change lagged the S&P 500's daily loss of 0.84%. Meanwhile, the Dow lost 0.36%, and the Nasdaq, a tech-heavy index, lost 0.15%.
Prior to today's trading, shares of the seller of gases for industrial, medical and other uses had lost 8.09% over the past month. This has lagged the Basic Materials sector's loss of 6.82% and was narrower than the S&P 500's loss of 10.24% in that time.
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 $2.78 per share, which would represent year-over-year growth of 10.76%. Our most recent consensus estimate is calling for quarterly revenue of $3.29 billion, up 15.89% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.29 per share and revenue of $12.28 billion, which would represent changes of +14.08% and +18.98%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Air Products and Chemicals. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% lower. Air Products and Chemicals is currently a Zacks Rank #3 (Hold).
Investors should also note Air Products and Chemicals's current valuation metrics, including its Forward P/E ratio of 23.47. Its industry sports an average Forward P/E of 9.11, so we one might conclude that Air Products and Chemicals is trading at a premium comparatively.
We can also see that APD currently has a PEG ratio of 1.65. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Chemical - Diversified stocks are, on average, holding a PEG ratio of 1.25 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 142, which puts it in the bottom 44% 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.
To follow APD in the coming trading sessions, be sure to utilize Zacks.com.