What’s Praxair’s Stock Price Ahead of Its 3Q16 Earnings?



Praxair to announce its 3Q16 earnings

Praxair (PX) focuses on specialty gases. It’s set to report its 3Q16 earnings in a conference call with securities analysts at 11:00 AM EST on October 27, 2016.

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Series overview

In this series, we’ll take a look at Praxair’s stock performance after its 2Q16 earnings. We’ll also look at analysts’ expectations for Praxair’s revenues, margins, and their recommendations for the stock. Finally, we’ll take a look at Praxair’s valuations compared to its peers.

Praxair’s stock performance

Praxair’s stock is on a roll in 3Q16 backed up by good business deals and the termination of a potential merger with Linde AG. In the span of three months, from July 1 to September 30, 2016, Praxair returned 7.5%. It outperformed its peers’ such as Air Products and Chemicals (APD) and Ecolab (ECL). They returned 5.8% and 2.6%, respectively. However, International Flavors and Fragrances (IFF) was an exception. It returned 13.40% for the same period.

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On a year-to-date basis, Praxair had a handsome return of 17.1%, while its peers such as Air Products and Chemicals, Ecolab, and International Flavors and Fragrances returned 10.7%, 2.1%, and 8.2%, respectively, as of October 21, 2016. Praxair touched a 52-week high of $125, while its 52-week low was $95.60 as of October 21, 2016. The short interest tells the number of shares that investors have sold but not yet covered or closed. Praxair’s short interest volumes have fallen drastically from 4.72 million shares on July 1, 2016, to 2.56 million on September 30, 2016. Usually, when the stock price is expected to rise, the short interest volume will tend to fall—the opposite of this is also true.

ETF investment

Investors can indirectly hold Praxair by investing in the iShares U.S. Basic Materials ETF (IYM). IYM invested 6.3% of its holdings in Praxair as of October 21, 2016. In the next part, we’ll analyze Praxair’s revenue estimate in 3Q16.


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