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Air Products and Chemicals (APD) Outpaces Stock Market Gains: What You Should Know

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Air Products and Chemicals (APD) closed the most recent trading day at $248.23, moving +1.64% from the previous trading session. This change outpaced the S&P 500's 1.42% gain on the day. Elsewhere, the Dow gained 0.97%, while the tech-heavy Nasdaq lost 0.07%.

Prior to today's trading, shares of the seller of gases for industrial, medical and other uses had gained 1.56% over the past month. This has outpaced the Basic Materials sector's loss of 5.45% and lagged the S&P 500's gain of 6.69% in that time.

Air Products and Chemicals will be looking to display strength as it nears its next earnings release, which is expected to be August 4, 2022. The company is expected to report EPS of $2.61, up 12.99% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.06 billion, up 17.48% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.25 per share and revenue of $12.02 billion. These totals would mark changes of +13.64% and +16.44%, respectively, from last year.

Any recent changes to analyst estimates for Air Products and Chemicals should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.12% lower. Air Products and Chemicals is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Air Products and Chemicals is currently trading at a Forward P/E ratio of 23.82. Its industry sports an average Forward P/E of 9.76, 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 1.86. 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 - Diversified stocks are, on average, holding a PEG ratio of 1.03 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 176, which puts it in the bottom 31% 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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