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Praxair Stock Continues to Surge beyond November

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Nov. 19 2019, Updated 4:29 p.m. ET

Praxair’s stock price

Praxair (PX) stock gave a decent performance in November, closing at $120.3, which reflects a gain of ~3.7% in one month. This positive performance can be attributed to better-than-expected 3Q16 earnings, the surge in US markets after the November 8 election, and the resumption of merger talks with Linde AG.

However, Praxair underperformed the broader market, as represented by the SPDR S&P 500 ETF (SPY), as well as peer Air Products and Chemicals (APD), which returned 3.7% and 8.3%, respectively, in November.

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Moving averages

Praxair’s gains have widened its 100-day moving average price gap. The stock was trading ~4.3% above its 100-day moving average price of $118.8 on December 9, 2016. Meanwhile, its 14-day RSI (relative strength index) of 67 indicates that the stock is inching closer to an overbought situation. (Remember, an RSI score of 70 means that a stock has moved temporarily to overbought status, whereas RSI score below 30 indicates that a stock has moved temporarily into an oversold status.)

On December 9, 2016, Praxair closed ~29.6% above its 52-week low of $95.6 and ~0.90% below its 52-week high of $125.00. On a YTD (year-to-date) basis, Praxair has gained 21.0%, underperforming Air Products and Chemicals (APD), which has gained 24.3% YTD.

Notably, investors can hold Praxair indirectly by investing in Materials Select Sector SPDR Fund (XLB), which had 4.8% of its total holdings in PX on December 9, 2016. The top holdings of XLB include Dow Chemical (DOW) and DuPont (DD), with weights of 8.1% and 7.9%, respectively.

Series overview

In this series, we’ll analyze Praxair’s (PX) critical business developments and other company updates. We’ll also check in with the analysts’ latest recommendations, along with the company’s most recent valuations.

Let’s move now to what analysts are saying about Praxair.

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