Air Products and Chemicals (APD) closed the most recent trading day at $247.36, moving -0.45% from the previous trading session. This move was narrower than the S&P 500's daily loss of 0.72%. At the same time, the Dow lost 0.45%, and the tech-heavy Nasdaq lost 0.27%.
Coming into today, shares of the seller of gases for industrial, medical and other uses had lost 7.15% in the past month. In that same time, the Basic Materials sector lost 6.49%, while the S&P 500 lost 9.06%.
Air Products and Chemicals will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.78, up 10.76% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.3 billion, up 16.08% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.29 per share and revenue of $12.29 billion, which would represent changes of +14.08% and +19.03%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Air Products and Chemicals. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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. The Zacks Consensus EPS estimate has moved 0.05% higher within the past month. Air Products and Chemicals is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Air Products and Chemicals is currently trading at a Forward P/E ratio of 24.14. This valuation marks a premium compared to its industry's average Forward P/E of 9.48.
We can also see that APD currently has a PEG ratio of 1.7. 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. Chemical - Diversified stocks are, on average, holding a PEG ratio of 1.26 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 94, which puts it in the top 38% 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Air Products and Chemicals, Inc. (APD) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research