With a market capitalization of $64.5 billion, Air Products and Chemicals, Inc. (APD) is a global supplier of atmospheric, process and specialty gases, serving industries such as manufacturing, energy, healthcare, chemicals and metals in the Americas, Asia, Europe, the Middle East and India. It also designs and manufactures advanced equipment for gas processing, liquefaction, storage and transportation solutions.
Shares of the Allentown, Pennsylvania-based company have underperformed the broader market over the past 52 weeks. APD shares have gained 7.5% during this period, while the broader S&P 500 index ($SPX) has gained 27.9%. However, the stock has returned 17.2% year to date, outperforming SPX’s 9.2% return.
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Looking closer, shares of the industrial gases giant have lagged the State Street Materials Select Sector SPDR ETF’s (XLB) 17.1% rise over the past 52 weeks.
Air Products and Chemicals shares fell marginally on April 30 despite reporting strong second-quarter 2026 results, including adjusted EPS of $3.20, adjusted operating income of $753 million and a 9% increase in sales to $3.2 billion, as investors focused on continued macroeconomic uncertainty and continued pressure on helium prices. While the company raised its full-year adjusted EPS guidance to $13 – $13.25 and projected third-quarter adjusted EPS to $3.25 – $3.35, lower helium prices hurt profitability in the Americas, Asia and Europe segments.
Investors were also concerned about high projected capital expenditures of approximately $4 billion for fiscal 2026 and softer price trends.
For the fiscal year ending September 2026, analysts expect APD’s adjusted EPS to increase 9.7% year over year to $13.20. The company’s history of earnings surprises is mixed. It surpassed consensus estimates in three of the last four quarters and missed estimates on another occasion.
Among the 23 analysts covering the stock, the consensus rating is “Moderate Buy.” This is based on 14 “Strong Buy” ratings, one “Moderate Buy” and eight “Holds.”
On April 24, RBC Capital raised its price target on Air Products and Chemicals to $338 and maintained an “outperform” rating.
The average price target of $331.62 represents a 14.6% premium to APD’s current price levels. The Street’s high price target of $360 suggests a potential upside of 24.4%.
As of the date of publication, Sohini Mondal had no (directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. This article was originally published on Barchart.com