Air Products and Chemicals, Inc. (APD) Buy or Sell Stock Guide
The analysis below may be helpful to you if you have any of the following questions about APD stock:
- Is APD a buy or a sell?
- Should I sell or hold APD stock today?
- Is APD a good buy / a good investment?
- What are APD analyst opinions, recommendations, ratings?
Here are APD stock buy reasons/signals:
1. The industrial gas industry has consolidated significantly since the late 1990s, and the top four players now control nearly 85% of the market.
2. Air Products has built a strong oxygen presence in China. It has among the highest market share in new projects in the region, which will benefit the firm as coal gasification activity increases.
3. Air Products supplies hydrogen to roughly 90% of U.S. Gulf refiners and operates the only major hydrogen pipeline serving the Canadian oil sands region. It is well positioned to benefit from rising North American oil and gas production and processing.
4. APD quarterly revenue growth was 17.70%, higher than the industry and sector average revenue growth (8.68% and 5.09%, respectively).
5. APD profitability is improving. The YoY profit margin change was 30.02pp.
6. APD forward dividend yield is 2.65%, higher than the industry (1.07%) and sector (0.37%) forward dividend yields.
7. APD average analyst rating is Buy.
8. APD average analyst price target ($186.74) is above its current price ($163.54).
Here are APD stock sell reasons/signals:
1. Air Products has the largest exposure to the Canadian oil sands among its peers. The significant decline in global energy prices and uncertain end-market demand create earnings uncertainty and management challenges.
2. Air Liquide's acquisition of Airgas and the potential Linde-Praxair merger could leave Air Products with the smallest global footprint and customer base among industrial gas majors.
3. Following aggressive restructuring and a series of divestments, Mr Ghasemi must now rely on traditional avenues for growth in its core business, which may not excite investors
4. APD forward P/E ratio is 19.99, and it’s high compared to its industry peers’ P/E ratios.
5. APD Price/Sales ratio is 4.21, and it’s high compared to its industry peers’ P/S ratios.
What are your thoughts on APD?
If you liked this analysis, check out Buy or Sell Stock Guides for other stocks.