Is Air Products and Chemicals Stock Underperforming the S&P 500?
Allentown, Pennsylvania-based Air Products and Chemicals, Inc. (APD) provides atmospheric gases, process and specialty gases, equipment, and related services. Valued at $61.5 billion by market cap, the company develops, engineers, builds, owns, and operates some of the world's largest industrial gas projects, including gasification projects for producing high-value power, fuels, and chemicals.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and APD perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the specialty chemicals industry. APD operates in over 50 countries, allowing it to tap into diverse markets and offer a wide range of products. The company's strong focus on research and development has led to technological advancements in areas like cryogenics and hydrogen fuel cells, giving it a competitive edge in the market.
Despite its notable strength, APD slipped 19% from its 52-week high of $341.14, achieved on Feb. 4. Over the past three months, APD stock declined 11.4%, underperforming the S&P 500 Index’s ($SPX) 1.7% rise during the same time frame.
In the longer term, shares of APD fell 4.8% on a YTD basis but climbed 2.2% over the past 52 weeks, underperforming SPX’s YTD marginal gains and 10.9% returns over the last year.
To confirm the bearish trend, APD has been trading below its 200-day moving average since mid-March. However, the stock is trading above its 50-day moving average recently.
On May 1, APD shares closed up marginally after reporting its Q2 results. Its revenue stood at $2.9 billion, down slightly year over year. The company’s adjusted EPS declined 5.6% year over year to $2.69.
In the competitive arena of specialty chemicals, Linde plc (LIN) has taken the lead over APD, showing resilience with a 12.3% uptick on a YTD basis and 8.1% gains over the past 52 weeks.
Wall Street analysts are moderately bullish on APD’s prospects. The stock has a consensus “Moderate Buy” rating from the 22 analysts covering it, and the mean price target of $319.70 suggests a potential upside of 15.7% from current price levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.