Linde (LIN) Stock Drops Despite Market Gains: Important Facts to Note

In the latest trading session, Linde (LIN) closed at $409.77, marking a -0.35% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.04%. On the other hand, the Dow registered a gain of 0.14%, and the technology-centric Nasdaq decreased by 0.03%.

Prior to today's trading, shares of the gas supplier had lost 0.04% over the past month. This has lagged the Basic Materials sector's gain of 9.26% and the S&P 500's gain of 5.28% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Linde in its upcoming earnings disclosure. The company's upcoming EPS is projected at $3.50, signifying a 10.76% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $8.06 billion, indicating a 2.02% increase compared to the same quarter of the previous year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $14.11 per share and revenue of $32.55 billion. These totals would mark changes of +14.81% and -2.45%, respectively, from last year.

Any recent changes to analyst estimates for Linde should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. At present, Linde boasts a Zacks Rank of #2 (Buy).

In terms of valuation, Linde is presently being traded at a Forward P/E ratio of 29.15. This expresses a premium compared to the average Forward P/E of 18.46 of its industry.

Meanwhile, LIN's PEG ratio is currently 2.78. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Chemical - Specialty stocks are, on average, holding a PEG ratio of 2.78 based on yesterday's closing prices.

The Chemical - Specialty industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 145, which puts it in the bottom 43% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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