While the softness in China is a concern, APD benefits from its investments in high-return industrial gas projects and productivity actions.
Demand softness in specific markets and the slowdown in China and Europe pose headwinds for the Zacks Chemicals Diversified industry. APD, DD and EMN are poised to navigate the industry challenges.
It's been a great year for the broader indexes, but recent market volatility may have some investors wondering if now is a good time to sell stocks.
Evercore ISI raised the firm's price target on Air Products to $375 from $365 and keeps an Outperform rating on the shares as a new analyst took over coverage of the stock and 10 other chemical names. Dissonance between sputtering industrial demand into year-end and prospects for a "less bad" 2025 has "muddled the forward outlook for chemicals investors" and the firm's sense is further EBITDA and EPS cuts coming to Q1 and FY25 "are needed to clear the deck," the analyst says. However, Evercore suspects the stocks "move sharply higher with signs of improving demand, so begin to position accordingly," the analyst added.
While the softness in China is a concern, APD gains on its investments in high-return industrial gas projects and productivity measures.
APD benefits from its investments in high-return industrial gas projects and productivity and pricing measures.
APD gains on its investments in high-return industrial gas projects and productivity and cost improvement actions.
Dividends are a key way these three companies pass along profits to their shareholders.
Mantle Ridge has nominated nine directors to replace the board at Air Products and Chemicals , with the activist investor pushing the industrial gases maker to name a new CEO, shift its capital allocation and abandon riskier projects.
Air Products and Chemicals is a high-quality industrial gases company with a strong balance sheet, consistent dividend growth, and a sustainability-driven growth strategy. Valuation analysis suggests APD is rarely cheap, with a current PEG ratio around 2.4x, making it a favorable long-term investment despite a high P/E ratio. For swing traders, an entry below 20x earnings is ideal, while long-term investors can consider up to 25x earnings.
Shares of Air Products and Chemicals have shown mixed performance, with recent improvements driven by better results and activist pressure, but now appear fairly valued. APD's Q4 results showed a 13% EPS increase despite flat revenue, driven by margin expansion and operational efficiencies, with regional performance varying meaningfully. Management's guidance for fiscal 2025 is cautious, with a focus on reducing capital expenditures and addressing investor concerns, including succession planning and hydrogen project risks.
Air Products and Chemicals, Inc. (NYSE:APD ) Q4 2024 Earnings Conference Call November 7, 2024 8:30 AM ET Company Participants Eric Guter - IR Seifi Ghasemi - Chairman, President and CEO Melissa Schaeffer - CFO Sean Major - EVP, General Counsel and Secretary Conference Call Participants John McNulty - BMO Capital Markets Jeff Zekauskas - JPMorgan Patrick Cunningham - Citi Steve Byrne - Bank of America David Begleiter - Deutsche Bank John Roberts - Mizuho Chris Parkinson - Wolfe Research Mike Sison - Wells Fargo Josh Spector - UBS Kevin McCarthy - Vertical Research Partners Mike Leithead - Barclays Duffy Fischer - Goldman Sachs Laurence Alexander - Jefferies Sebastian Bray - Berenberg Operator Good morning, and welcome to Air Products' Fourth Quarter Earnings Release Conference Call. Today's call is being recorded at the request of Air Products.