Stock of the Day

November 16, 2020

Air Products and Chemicals (APD)

$310.02
-$4.26 (-1.4%)
Market Cap: $69.92B

About Air Products and Chemicals

Air Products and Chemicals, Inc. provides atmospheric gases, process and specialty gases, equipment, and related services in the Americas, Asia, Europe, the Middle East, India, and internationally. The company produces atmospheric gases, including oxygen, nitrogen, and argon; process gases, such as hydrogen, helium, carbon dioxide, carbon monoxide, and syngas; and specialty gases for customers in various industries, including refining, chemical, manufacturing, electronics, energy production, medical, food, and metals. It also designs and manufactures equipment for air separation, hydrocarbon recovery and purification, natural gas liquefaction, and liquid helium and liquid hydrogen transport and storage. The company was founded in 1940 and is headquartered in Allentown, Pennsylvania.

Air Products and Chemicals Bull Case

Here are some ways that investors could benefit from investing in Air Products and Chemicals, Inc.:

  • Recent upgrades from multiple analysts, including Barclays and Wells Fargo, indicate strong confidence in the company's growth potential, with price targets raised to $365.00 and $375.00 respectively.
  • The current stock price is $316.74, which is positioned favorably compared to the consensus target price of $339.94, suggesting potential for price appreciation.
  • Air Products and Chemicals, Inc. has announced an increase in its quarterly dividend to $1.79, reflecting a commitment to returning value to shareholders and a healthy dividend payout ratio of 41.11%.
  • The company has a solid market capitalization of $70.44 billion, indicating stability and the ability to invest in growth opportunities.
  • Analysts have rated the stock with a consensus of "Moderate Buy," with a significant number of buy ratings, suggesting positive market sentiment towards the company's future performance.

Air Products and Chemicals Bear Case

Investors should be bearish about investing in Air Products and Chemicals, Inc. for these reasons:

  • Insider selling activity has been noted, with CFO Melissa N. Schaeffer selling 3,233 shares, which may raise concerns about the company's short-term outlook from those within the organization.
  • Despite recent upgrades, one analyst has issued a sell rating, indicating that not all market participants share a positive view on the stock's future performance.
  • The company has a debt-to-equity ratio of 0.71, which, while manageable, suggests that it is not entirely free from leverage risks that could impact financial stability in adverse conditions.
  • With a P/E ratio of 18.39, the stock may be considered overvalued compared to industry peers, which could deter value-focused investors.
  • Market volatility and economic uncertainties could pose risks to the company's performance, affecting its ability to meet growth expectations set by analysts.

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