209.92 0.00 (0.00%)
After hours: 4:53PM EST
|Bid||209.35 x 1000|
|Ask||209.84 x 1000|
|Day's Range||206.87 - 210.25|
|52 Week Range||145.95 - 210.50|
|Beta (5Y Monthly)||0.79|
|PE Ratio (TTM)||23.22|
|Earnings Date||Nov 12, 2019|
|Forward Dividend & Yield||3.50 (1.70%)|
|1y Target Est||218.65|
Dec.10 -- Herald van der Linde, head of APAC equity strategy at HSBC Global Research, discusses his outlook for China’s markets heading into the new year. He speaks on “Bloomberg Markets: Asia.”
Sometimes, we can turn a hobby into a career. Israel 'Izzy' Englander was always interested in the financial markets, and as far back as high school he started trading stocks. He formed his first brokerage house in 1977, at age 30, and in 1988, with $35 million in seed money, he opened Millennium Management where he continues to serve as CEO. In the 31 years since, his fund has grown that original seed more than 1,000-fold and now holds over $39 billion in assets under management.Millennium’s success has brought Englander wealth and reputation – he holds a personal net worth of $6.6 billion, and his investment services are highly sought after.Englander’s move up the ladder is truly the accomplishment of a self-made man; his parents emigrated to the US after WWII after getting out of Soviet labor camps. Rising to the top from such humble beginnings is no mean feat. Englander managed it with a combination of intelligence, grit, and steadfast adherence to three basic trading principles: Put a tight control on risk; use non-directional trading strategies; and maintain the discipline to stick to the first two rules. Keeping to those simple principles has helped this quiet-mannered man make Millennium Management one of the best hedge funds around.We’ve opened up the TipRanks Stock Screener tool to narrow down 3 "strong buy" stocks that Millennium placed its bets on in Q3. The fund giant spent almost $600 million to stake or increase positions in these three interesting names. It also doesn't hurt that each one has over 15% upside potential, according to top analysts. Let's take a closer look to find out why Izzy Englander and the Street found them so compelling.Linde (LIN)First on the list is industrial gas company Linde. In the chemical business since 1879, Linde is the dominate player in the industrial gas niche, holding the largest market share and bringing in the largest revenues. The company’s gas operations provide a full range of industrial gasses to a wide variety of sectors: heavy industry, medical providers, and HVAC applications among others. Products include elemental gasses such as oxygen, nitrogen, hydrogen, and argon, and compounds like carbon monoxide and refrigerants.Linde consolidated its leading position in the gas industry through a merger. The company announced in October 2018 that it would join with its competitor Praxair in a merger of equals. Linde chairman Dr. Wolfgang Reitzle, who heads the board of the combined entity described the move as a “compelling and transformative combination.”The company has seen quarterly EPS rise through 2019, and in the recent Q3 report saw revenues more than double year-over-year, from $3.01 billion in Q3 2018 to $7 billion now. The massive increase eased any worries over the revenue number coming in just under the forecast. Quarterly EPS did not give even that limited disappointment. Earnings were reported at $1.94 per share, clobbering the forecast by 9%, and growing 26% from the year-ago quarter. LIN is up 33% so far in 2019, beating out the S&P’s gains of 24%.Steady appreciation and strong profit growth were the attractors here for Englander’s hedge fund – the Q3 earnings numbers simply justified his purchase decision after the fact. During Q3, Millennium purchased 492,006 shares, more than doubling the firm’s holding. Millennium now controls more than 729,000 shares in LIN, worth over $142.4 million.Wall Street’s analysts like what they see in LIN. Writing from SunTrust Robinson, James Sheehan says, “We believe the merger of Praxair and Linde will be highly accretive in the coming years... We believe strong organic growth trends are sustainable, and expect the stock to benefit from its relative earnings stability late in the economic cycle.” Sheehan rates the stock a Buy, while raising his price target to $235, which implies about 15% upside from yesterday's closing price. (To watch Sheehan’s track record, click here)Laurence Alexander, a 5-star analyst with Jefferies, concurs that the future looks good for LIN. He describes a “base case” of 8% sales through the end of 2024, and sees two important positive points for the stock: “Pricing environment should continue to improve as utilization rates rise [and] industrial capex should rise, which is positive for industrial gas project backlogs…” Alexander $241 price target indicates a decidedly bullish 19% upside to go with his Buy rating. (To watch Alexander’s track record, click here)Overall, LIN shares get a Strong Buy from the analyst consensus. The stock has 6 recent reviews, with 5 of those being buy-side – giving the bulls a strong advantage over the lone cautious Hold. Shares in LIN are selling for $205, and the $233.24 average price target suggests an upside potential of nearly 15%. (See Linde’s price targets and analyst ratings on TipRanks).L3Harris Technologies (LHX)The next stock on our list is from the defense industry. L3Harris produces a wide variety of equipment, including command and control systems, tactical radios and other wireless equipment, avionics and electronics, and night vision systems.Like LIN above, LHX has conducted a recent merger. Earlier this year, L3Harris was formed as a new entity through the combination of L3 Technologies and Harris Corporation. The parent companies converted their stock to the new ticker, LHX, which started trading on July 1. After accounting for 1H19’s separate income streams, the combined company, L3Harris, is estimated to show $17 billion in 2019 revenues.At the end of October, LHX reported Q3 earnings – an important release, as it was the company’s first quarter of operations as a combined entity. The quarterly report did not disappoint. At $2.58, EPS was 8% better than the $2.39 estimate, while the $4.43 billion in revenue was in-line with the $4.45 billion forecast. The company reported just over $1 billion in cash on hand, even after the quarter’s return of $922 million to shareholders through buybacks and dividends.Of the stocks in this list, LHX is Millennium’s new position. Considering the size of the company by revenue, it’s strong position in the defense contractor field, and its prospects for the near-term, it’s now wonder that Englander bought into it. His fund shelled out over $260 million for 1,378,220 shares in LHX.Writing from Barclays, David Strauss describes L3Harris as a “Top Pick.” He is particularly impressed by the company’s cash position, and writes, “Our adjusted EPS estimates and FCF forecasts remain ahead of consensus. We forecast LHX achieving $3B in FCF a year early in 2021… we estimate that LHX trades at a 6.8% FCF yield (2021), which equates to a >20% discount to its defense peer group.”Strauss, a 4-star analyst, gives this stock a Buy rating with a $270 price target, suggesting an impressive 40% upside potential. (To watch Strauss’s track record, click here.)Like LIN above, LHX has one recent hold rating. That cautious missive is outweighed by 6 Buy reviews, however, giving the stock a Strong Buy consensus view. LHX’s $245.43 average price target implies an upside of 27% from the current share price of $194. (See L3Harris stock analysis on TipRanks)Alibaba (BABA)The third and final stock on our list needs less of an introduction. Alibaba is China’s answer to Amazon – an e-commerce giant serving the world’s most populous nation. Even with China’s lower rates of internet penetration, Alibaba can rely on a domestic customer base some 800 million strong. One measure of the company’s firm foundation came from this year’s Singles Day numbers, when it racked up 25% year-over-year sales growth on China’s largest online shopping day. The final total, $38.4 billion, was a new Singles Day sales record – the third year in a row.It’s hard not to like BABA as an investment, and Englander has moved into it in a big way. His fund increased its holding in the stock by 179%, adding 636,892 shares to the 356,270 that were already in Millennium’s portfolio. The brought the total stake Alibaba to $192.3 million.In the recent earnings season, BABA reported fiscal Q2 earnings – and the results are consonant with the stock’s strong performance. The $1.83 EPS whomped the $1.50 estimate by 22%. On the top line, quarterly revenues of $16.65 billion beat the forecast by $180 million. The company saw 785 million monthly active users on mobile apps in September, an increase of 30 million just since this past June.Alex Yao, 4-star analyst with JPMorgan, is optimistic that Alibaba can continue its strong growth trends. He wrote, “We believe financial outlook for the next12-18 months is turning clearer and stronger due to 1) resilient revenue growth outlook of core-core commerce with proven operating leverage 2) increasing financial discipline in… We expect these trends to continue in the coming quarters, leading to 44% Non-GAAP EPS growth in 2HFY20.”With a growth forecast like that, Yao rates this stock a Buy. He bumped his price target up slightly, to $235, indicating confidence in a 21% upside for BABA shares. (To watch Yao’s track record, click here)Wall Street is clear in its opinion of BABA, as the stock boasts another Strong Buy from the analyst consensus, based on an impressively unanimous 19 Buy ratings given in recent weeks. The average price target is in-line with Yao’s, at $235, and suggests a 17% upside from the current trading price of $200. (See Alibaba stock analysis on TipRanks)
What most investors don’t know is that core earnings, when adjusted for unusual gains and losses hidden in footnotes, are a lot worse than they realize. Answer: Most investors are not aware of the more severe decline in core earnings. Over the trailing 12 months, GAAP earnings fell 1% while adjusted core earnings fell 6% for the largest 1,000 companies by market capitalization in each period.
The Insider Monkey team has completed processing the quarterly 13F filings for the September quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors experienced strong gains on the back of a strong market performance, which certainly propelled them to adjust their equity holdings so as […]
GUILDFORD, UK / ACCESSWIRE / November 25, 2019 / Linde (LIN)(LIN) announced today that it has signed a memorandum of understanding (MoU) with Baowu Steel Group's new subsidiary, Baowu Clean Energy Ltd, to jointly cooperate on research and development to further develop China's hydrogen market for industrial and mobility applications. The two companies will work together to increase the accessibility of hydrogen to industries and advance the acceptance of hydrogen mobility solutions in China. Under the agreement, Linde and Baowu Clean Energy will also explore the option to invest in liquid hydrogen plants and infrastructure.
GUILDFORD, UK / ACCESSWIRE / November 19, 2019 / Linde (NYSE: LIN; FWB: LIN), announced today that Linde and its affiliates, including Praxair, Inc., are increasing prices on product and equipment rentals ...
Finnish state-owned gas company Gasum said on Wednesday it had agreed to buy Linde's liquefied natural gas (LNG) and marine bunkering business in Norway and Sweden. Gasum did not disclose the value of the deal. The assets include one LNG liquefaction plant, two LNG terminals, two LNG bunkering vessels and 48 gas filling stations.
Linde plc on Tuesday raised its 2019 earnings per share (EPS) growth forecast for the third time after it raised prices even as the economic outlook worsened. The world's largest industrial gases group now expects adjusted full-year diluted EPS to grow between 17% and 18% to between $7.25 and $7.30, up from previous guidance for 12% to 16% growth. "For the remainder of the year we anticipate continued softening of the global economy, however, we are raising our full-year EPS guidance given the opportunities we see to continue to improve the quality of our business," Linde's CEO Steve Angel said in statement.
Financial Highlights - Sales $7.0 billion, ex. FX +4% versus prior year - Operating profit margin 14.3%, adjusted pro forma operating profit margin 19.8% - Strong operating cash flow of $1.9 billion increased ...
GUILDFORD, UK / ACCESSWIRE / November 7, 2019 / Linde (NYSE: LIN; FWB: LIN), announced today that its joint venture, Linde LienHwa (LLH), will invest approximately USD 100 million to build three new high ...
Which stocks are primed for positive reactions? While less trendy than biotechs, Wall Street pros point to chemical stocks as capable of rewarding investors handsomely in the years to come. Not only has this sector generated double-digit returns in the last five years, but names in this space also typically perform well in an economic downturn.“Even during the financial crisis, the chemicals industry outperformed other industries. And the difference in value creation is substantial: where a $100 investment in telecoms in 2000 would have returned a meager $164 by 2018, the same investment in chemicals would have returned over $500,” wrote Arthur D Little consultants Michael Kolk, Koji Uchida and Marc de Pater.With the consultants noting that the demand for chemical-based solutions is likely to persist, we turned to one of the Street’s best-performing analysts, Wells Fargo’s Michael Sison, to find compelling investments in the sector.Using TipRanks, we were able to take an in-depth look at his top picks in the chemical industry. On top of getting a vote of confidence from Sison, each of the names has amassed enough support from other Wall Street analysts in the last three months to warrant a “Strong Buy” consensus rating.Ingevity Corporation (NGVT)Performance materials and chemicals company Ingevity provides specialty chemicals and high performance carbon materials. While investors have expressed concerns related to the demand for pine chemicals, Sison remains optimistic about NGVT.The five-star analyst tells investors that NGVT is a stand-out as it’s the only major global player that can meet the new Vapor Emission regulatory road map. This is necessary to be compliant with stricter standards in the U.S., China and Canada.“We believe NGVT is the only player serving the U.S. and Canada changes and market share in China could double in the term. Performance materials has grown well above 20% annually for the last three years including 2019 and we expect double digit growth through 2021,” Sison commented.It also doesn’t hurt that regulatory requirements in China as well as sales of its honeycomb scrubber products drove a third quarter earnings beat. In addition, given the company’s recent purchase of Perstorp Holding AB’s Capa segment and its pine chemicals stabilization, Sison is convinced that NGVT will be a long-term winner. As a result, the analyst reiterated his Buy rating and $100 price target, which implies about 15% upside from current levels.Similarly, the rest of the Street takes a bullish approach when it comes to NGVT. 4 Buy ratings and 1 Hold received in the last three months add up to a ‘Strong Buy’ analyst consensus. Not to mention its $108 average price target implies 23% upside potential. (See Ingevity stock analysis on TipRanks)Ashland Global Holdings (ASH)On the heels of recent divestitures, Sison argues that now is the ideal time to buy chemical company Ashland.Over the last decade, ASH has placed a significant focus on tailoring its product portfolio to become a pure play specialty chemical and ingredient company. Sison believes this shift away from non-chemical and more commoditized assets, which included divesting from Composites and its Marl BDO facility, was strategic as it could drive substantial gains.“With recent divestitures, ASH is now a pure-play specialty chemical company with EBITDA margins firmly in the low 20s, with a pathway to move to the mid-20s. We see growth for the next couple years anchored by cost savings initiatives, improved organic growth and bolt-on acquisitions,” the analyst explained.Sison also highlights ASH for its long-term goal of improving EBITDA margins. He adds that this improvement could be fueled by “a combination of more productivity/cost savings initiatives and more capital deployed to its consumer and personal care franchises to drive more consistent organic sales growth."All of the above factors prompted the analyst to initiate his ASH coverage with a bullish call. On top of this, Sison’s $90 price target indicates that he sees shares rising 15% over the next twelve months.As only Buy recommendations have been issued in the last three months, the message is clear: ASH is a ‘Strong Buy’. The average price target of $90 has the upside potential falling right in line with Sison’s projection. (See Ashland stock analysis on TipRanks)Linde (LIN)Sison maintains that Linde is a solid bet in the space thanks to the fact that its strong long-term growth narrative is supported by integration synergies, positive pricing and several new projects.Back in October 2018, the company merged with Praxair to become the largest industrial gas company in the world. With the expected cost and capex synergies resulting from the merger landing at $1.1 billion, it’s no wonder Sison is excited about this name. Not to mention he adds that the upside potential from cross selling offerings as well as improved focus on applications and technology could bring EBITDA margins back to the low 30s. If that wasn’t enough, the analyst sees EPS growth being driven by the $4.7 billion worth of backlogged projects it had as of Q2 2019.Sison reminds investors that the industry as a whole remains attractive with “four global players where pricing power is accelerating, margins are high, customer contracts are long term in nature with some having take or pay provisions and all focused on improving returns on capital”.Based on all of these positives, the five-star analyst gave LIN his stamp of approval by starting coverage with a Buy rating. According to his $223 price target, the upside potential comes in at about 12%.Other Wall Street analysts appear to mirror the analyst’s sentiment. As a result of the 3 Buy ratings and 1 Hold it racked up over the last three months, LIN is a ‘Strong Buy’. (See Linde stock analysis on TipRanks)
Linde Starts Up New Plant for Electronics Manufacturer in Shanghai GUILDFORD, UK / ACCESSWIRE / October 31, 2019 / Linde (NYSE:LIN)(FWB:LIN) announced today that it has started up a new SPECTRA high purity ...
GUILDFORD, UK / ACCESSWIRE / October 29, 2019 / Linde (NYSE:LIN)(FWB:LIN) announced that it started up two plants to supply oxygen and nitrogen to Taixing Jinyan Chemical Technology Co., Ltd. (Taixing ...
GUILDFORD, UK / ACCESSWIRE / October 25, 2019 / Linde (NYSE:LIN)(FWB:LIN) announced today that Andreas Opfermann has been named Executive Vice President Americas, effective November 1, 2019. Opfermann, ...