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Why Linde (LIN) Outpaced the Stock Market Today

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Linde (LIN - Free Report) closed the latest trading day at $408.92, indicating a +0.73% change from the previous session's end. This move outpaced the S&P 500's daily gain of 0.08%. Elsewhere, the Dow lost 0.31%, while the tech-heavy Nasdaq added 0.02%.

The gas supplier's stock has dropped by 0.92% in the past month, falling short of the Basic Materials sector's gain of 1.22% and the S&P 500's gain of 3.52%.

Investors will be eagerly watching for the performance of Linde in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 6, 2024. The company's upcoming EPS is projected at $3.51, signifying a 11.08% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $8.06 billion, up 2.07% from the year-ago period.

Investors should also note any recent changes to analyst estimates for Linde. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.06% higher. Linde presently features a Zacks Rank of #3 (Hold).

In terms of valuation, Linde is presently being traded at a Forward P/E ratio of 26.11. This represents a premium compared to its industry's average Forward P/E of 15.15.

It is also worth noting that LIN currently has a PEG ratio of 2.49. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Chemical - Specialty industry currently had an average PEG ratio of 2.49 as of yesterday's close.

The Chemical - Specialty industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 196, positioning it in the bottom 23% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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