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Air Products and Chemicals (APD) Dips More Than Broader Markets: What You Should Know
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Air Products and Chemicals (APD - Free Report) closed the most recent trading day at $286.84, moving -0.35% from the previous trading session. This move lagged the S&P 500's daily loss of 0.29%. Meanwhile, the Dow lost 0.55%, and the Nasdaq, a tech-heavy index, added 1.24%.
Heading into today, shares of the seller of gases for industrial, medical and other uses had gained 1.57% over the past month, outpacing the Basic Materials sector's loss of 0.49% and lagging the S&P 500's gain of 3.1% in that time.
Investors will be hoping for strength from Air Products and Chemicals as it approaches its next earnings release, which is expected to be August 3, 2023. In that report, analysts expect Air Products and Chemicals to post earnings of $2.91 per share. This would mark year-over-year growth of 11.07%. Our most recent consensus estimate is calling for quarterly revenue of $3.28 billion, up 2.86% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.42 per share and revenue of $13.28 billion. These totals would mark changes of +9.7% and +4.58%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Air Products and Chemicals. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
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 remained stagnant. Air Products and Chemicals is currently a Zacks Rank #3 (Hold).
In terms of valuation, Air Products and Chemicals is currently trading at a Forward P/E ratio of 25.21. Its industry sports an average Forward P/E of 14.11, 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 2.65. 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. APD's industry had an average PEG ratio of 1.35 as of yesterday's close.
The Chemical - Diversified industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 183, putting it in the bottom 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Air Products and Chemicals (APD) Dips More Than Broader Markets: What You Should Know
Air Products and Chemicals (APD - Free Report) closed the most recent trading day at $286.84, moving -0.35% from the previous trading session. This move lagged the S&P 500's daily loss of 0.29%. Meanwhile, the Dow lost 0.55%, and the Nasdaq, a tech-heavy index, added 1.24%.
Heading into today, shares of the seller of gases for industrial, medical and other uses had gained 1.57% over the past month, outpacing the Basic Materials sector's loss of 0.49% and lagging the S&P 500's gain of 3.1% in that time.
Investors will be hoping for strength from Air Products and Chemicals as it approaches its next earnings release, which is expected to be August 3, 2023. In that report, analysts expect Air Products and Chemicals to post earnings of $2.91 per share. This would mark year-over-year growth of 11.07%. Our most recent consensus estimate is calling for quarterly revenue of $3.28 billion, up 2.86% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.42 per share and revenue of $13.28 billion. These totals would mark changes of +9.7% and +4.58%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Air Products and Chemicals. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
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 remained stagnant. Air Products and Chemicals is currently a Zacks Rank #3 (Hold).
In terms of valuation, Air Products and Chemicals is currently trading at a Forward P/E ratio of 25.21. Its industry sports an average Forward P/E of 14.11, 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 2.65. 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. APD's industry had an average PEG ratio of 1.35 as of yesterday's close.
The Chemical - Diversified industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 183, putting it in the bottom 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.