) touched a new 52-week high of $131.0 during the trading session
on Jan 8. This is an increase over the previous high of $130.58
reached on Dec 31.
Praxair's shares closed at $130.93 at the end of trading on Jan
8, with a solid year-to-date return of 17.3%. The volume of
shares traded during that session was 1.3 million. Further upside
potential exists for this Zacks Rank #4 (Sell) industrial gas
producer and supplier as reflected in its projected earnings
growth rate of 11.5% for the next five years and positive
revisions in earnings estimates for 2014.
Long-term growth prospects are bright for Praxair especially on
the back of growing demand for industrial gases for use in
diverse industries, including hydrogen for refining; oxygen for
healthcare; and nitrogen and carbon dioxide for oil and gas
production. Also, customers' preference for Praxair's world class
technology, high quality products and gas supply services would
drive solid earnings growth, going forward.
The majority of Praxair's business runs on long-term contracts,
which provide a stable cash flow. The company's set-up of a
carbon dioxide purification facility at the Honeywell Resins
& Chemicals site in Hopewell, Va. is worth mentioning in this
regard. The long-term agreement signed between the two parties
has further strengthened their business
Estimate Revisions Show Potency
JOHNSON MATTHEY (JMPLY): Get Free Report
OLIN CORP (OLN): Free Stock Analysis Report
PPG INDS INC (PPG): Free Stock Analysis
PRAXAIR INC (PX): Free Stock Analysis Report
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Over the last 30 days, the Zacks Consensus Estimate for Praxair
has edged up 0.1% to $6.68 for 2014. Moreover,
for the company is currently at +1.5% for 2014.
Praxair currently has a market capitalization of $38.5 billion.
However, some better-ranked stocks in the industry include
Johnson Matthey plc
PPG Industries Inc.
). While Johnson Matthey carries a Zacks Rank #1 (Strong Buy),
both PPG Industries and Olin Corp hold a Zacks Rank #2 (Buy).