We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why You Should Retain Air Products (APD) Stock in Your Portfolio
Read MoreHide Full Article
Air Products and Chemicals, Inc. (APD - Free Report) is expected to benefit from its project investments, productivity actions and new business deals. However, the softness in Europe and China is a concern.
The company’s shares have lost 15.5% over a year, compared with a 10.3% decline of its industry.
Image Source: Zacks Investment Research
Let’s find out why this Zacks Rank #3 (Hold) stock is worth retaining at the moment.
APD Gains on High-return Projects and Productivity Actions
Air Products is well-placed to gain from its investments in high-return industrial gas projects and productivity measures. It remains focused on its gasification strategy and is executing its growth projects. These projects are expected to be accretive to earnings and cash flows.
APD is realizing the benefits of the completion of the second phase of the Jazan project in Saudi Arabia. The company has a total available capacity to deploy (over fiscal 2024-2033) $30.8 billion in high-return investments aimed at creating significant shareholder value.
Air Products is also driving productivity to improve its cost structure. It is seeing the positive impacts of its productivity actions. Benefits from additional productivity and cost improvement programs are likely to support its margins moving ahead. The company also remains focused on improving pricing amid an inflationary environment.
The company also remains committed to maximize returns to shareholders leveraging strong balance sheet and cash flows. Air Products’ board, in January 2024, increased its quarterly dividend to $1.77 per share. This marked the 42nd straight year of dividend increase. The company paid roughly $1.5 billion in dividends to shareholders in 2023. It expects to return roughly $1.6 billion to shareholders through dividends in 2024.
Weakness in Europe & China a Concern
The slowdown in China and Europe may affect the company’s business in these regions. The sluggish China economy is impacting volumes in the Industrial Gases - Asia segment. A slower economic recovery in China and the softness in electronics may continue to affect the segment’s volumes. Air Products is also seeing weak demand for merchant products in Europe. Its volumes in the Europe division fell 6% year over year in the fiscal second quarter partly reflecting weaker merchant volumes. The lack of growth in industrial output in Europe is a concern for the near term.
Stocks to Consider
Better-ranked stocks in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , Axalta Coating Systems Ltd. (AXTA - Free Report) and Kronos Worldwide, Inc. (KRO - Free Report) .
Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, with the average earnings surprise being 15.1%. The company’s shares have soared roughly 87% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Axalta Coating Systems, carrying a Zacks Rank #2 (Buy), has a projected earnings growth rate of 26.8% for the current year. In the past 60 days, the consensus estimate for AXTA's current-year earnings has been revised upward by 5.9%. The company’s shares have gained roughly 4% in the past year.
Kronos Worldwide currently carries a Zacks Rank #2. KRO has a projected earnings growth rate of 297.7% for the current year. The company’s shares have rallied around 41% in the past year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why You Should Retain Air Products (APD) Stock in Your Portfolio
Air Products and Chemicals, Inc. (APD - Free Report) is expected to benefit from its project investments, productivity actions and new business deals. However, the softness in Europe and China is a concern.
The company’s shares have lost 15.5% over a year, compared with a 10.3% decline of its industry.
Image Source: Zacks Investment Research
Let’s find out why this Zacks Rank #3 (Hold) stock is worth retaining at the moment.
APD Gains on High-return Projects and Productivity Actions
Air Products is well-placed to gain from its investments in high-return industrial gas projects and productivity measures. It remains focused on its gasification strategy and is executing its growth projects. These projects are expected to be accretive to earnings and cash flows.
APD is realizing the benefits of the completion of the second phase of the Jazan project in Saudi Arabia. The company has a total available capacity to deploy (over fiscal 2024-2033) $30.8 billion in high-return investments aimed at creating significant shareholder value.
Air Products is also driving productivity to improve its cost structure. It is seeing the positive impacts of its productivity actions. Benefits from additional productivity and cost improvement programs are likely to support its margins moving ahead. The company also remains focused on improving pricing amid an inflationary environment.
The company also remains committed to maximize returns to shareholders leveraging strong balance sheet and cash flows. Air Products’ board, in January 2024, increased its quarterly dividend to $1.77 per share. This marked the 42nd straight year of dividend increase. The company paid roughly $1.5 billion in dividends to shareholders in 2023. It expects to return roughly $1.6 billion to shareholders through dividends in 2024.
Weakness in Europe & China a Concern
The slowdown in China and Europe may affect the company’s business in these regions. The sluggish China economy is impacting volumes in the Industrial Gases - Asia segment. A slower economic recovery in China and the softness in electronics may continue to affect the segment’s volumes. Air Products is also seeing weak demand for merchant products in Europe. Its volumes in the Europe division fell 6% year over year in the fiscal second quarter partly reflecting weaker merchant volumes. The lack of growth in industrial output in Europe is a concern for the near term.
Stocks to Consider
Better-ranked stocks in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , Axalta Coating Systems Ltd. (AXTA - Free Report) and Kronos Worldwide, Inc. (KRO - Free Report) .
Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, with the average earnings surprise being 15.1%. The company’s shares have soared roughly 87% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Axalta Coating Systems, carrying a Zacks Rank #2 (Buy), has a projected earnings growth rate of 26.8% for the current year. In the past 60 days, the consensus estimate for AXTA's current-year earnings has been revised upward by 5.9%. The company’s shares have gained roughly 4% in the past year.
Kronos Worldwide currently carries a Zacks Rank #2. KRO has a projected earnings growth rate of 297.7% for the current year. The company’s shares have rallied around 41% in the past year.