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Linde (LIN) Rises As Market Takes a Dip: Key Facts

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Linde (LIN - Free Report) closed the most recent trading day at $467.55, moving +0.14% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.28%. On the other hand, the Dow registered a loss of 0.08%, and the technology-centric Nasdaq decreased by 0.42%.

Shares of the gas supplier witnessed a gain of 4.94% over the previous month, beating the performance of the Basic Materials sector with its gain of 4.7% and the S&P 500's gain of 2.67%.

The investment community will be paying close attention to the earnings performance of Linde in its upcoming release. The company is expected to report EPS of $3.68, up 7.6% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $8.34 billion, up 1.77% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $15.58 per share and revenue of $34.47 billion, indicating changes of +9.72% and +4.91%, respectively, compared to the previous year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Linde. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.2% increase. Linde presently features a Zacks Rank of #3 (Hold).

Looking at its valuation, Linde is holding a Forward P/E ratio of 29.97. Its industry sports an average Forward P/E of 18.05, so one might conclude that Linde is trading at a premium comparatively.

Also, we should mention that LIN has a PEG ratio of 3.05. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Chemical - Specialty stocks are, on average, holding a PEG ratio of 2.09 based on yesterday's closing prices.

The Chemical - Specialty industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 67, which puts it in the top 27% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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