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Linde (LIN) Gains But Lags Market: What You Should Know

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In the latest trading session, Linde (LIN - Free Report) closed at $341.30, marking a +0.73% move from the previous day. This change lagged the S&P 500's 1.3% gain on the day. At the same time, the Dow added 0.98%, and the tech-heavy Nasdaq gained 7.48%.

Coming into today, shares of the gas supplier had gained 5.38% in the past month. In that same time, the Basic Materials sector lost 4.19%, while the S&P 500 lost 2.95%.

Linde will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $3.09, up 5.46% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $8.04 billion, down 2.09% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $13.29 per share and revenue of $34.08 billion, which would represent changes of +8.14% and +2.15%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Linde. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Linde is currently a Zacks Rank #2 (Buy).

Digging into valuation, Linde currently has a Forward P/E ratio of 25.5. This valuation marks a premium compared to its industry's average Forward P/E of 15.55.

We can also see that LIN currently has a PEG ratio of 2.55. 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 - Specialty stocks are, on average, holding a PEG ratio of 2.5 based on yesterday's closing prices.

The Chemical - Specialty industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 218, which puts it in the bottom 14% 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.

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

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