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Linde (LIN) Registers a Bigger Fall Than the Market: Important Facts to Note

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Linde (LIN - Free Report) closed at $406.69 in the latest trading session, marking a -0.39% move from the prior day. This change lagged the S&P 500's 0.15% loss on the day. Elsewhere, the Dow lost 0.42%, while the tech-heavy Nasdaq added 0.09%.

Heading into today, shares of the gas supplier had gained 0.01% over the past month, lagging the Basic Materials sector's gain of 3.91% and the S&P 500's gain of 3.5% in that time.

The investment community will be paying close attention to the earnings performance of Linde in its upcoming release. The company's earnings per share (EPS) are projected to be $3.51, reflecting a 11.08% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $8.06 billion, showing a 2.02% escalation compared to the year-ago quarter.

Investors should also take note of any recent adjustments to analyst estimates for Linde. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 0.06% higher within the past month. Right now, Linde possesses a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Linde has a Forward P/E ratio of 26.26 right now. For comparison, its industry has an average Forward P/E of 15.17, which means Linde is trading at a premium to the group.

We can additionally observe that LIN currently boasts a PEG ratio of 2.51. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. LIN's industry 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 198, positioning it in the bottom 22% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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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