Praxair’s stock performance
So far in 2017, Praxair (PX) stock has made solid gains. On a YTD (year-to-date) basis, PX has risen 12.6%, outperforming peer Air Products and Chemicals (APD), which has risen only 0.1% YTD. PX has also outperformed the broad-based SPDR S&P 500 ETF (SPY), which has returned 8.1% YTD.
Praxair’s solid 2017 performance can be attributed to some of the new business deals it has won during the year so far. PX posted better-than-expected 1Q17 adjusted EPS (earnings per share) of $1.37, beating the analysts’ expectation of $1.33. For fiscal 2017, PX raised the lower end of its adjusted EPS to be in the range of $5.55–$5.80, as compared to its previous guidance of $5.45–$5.80.
Moving average and relative strength index
On May 26, 2017, PX stock closed at $131.97, or 15.5% higher than its 100-day moving average of $114.26. This difference indicates an upward trend in the stock. PX’s 52-week low is $106.31, and its 52-week high is $133.68.
The stock’s 14-day RSI (relative strength index) of 71 indicates that the stock has temporarily moved into an overbought position. Remember, an RSI of 70 indicates that a stock has moved into an overbought position, while an RSI of below 30 indicates that a stock has moved into an oversold position.
Notably, investors can hold Praxair indirectly by investing in the Materials Select Sector SPDR Fund (XLB), which had 6.5% of its total holdings in PX on May 26, 2017. The top holdings of XLB include Dow Chemical (DOW) and DuPont (DD), which have weights of 11.75% and 11.6%, respectively.
Continue reading this series for a detailed analysis of PX’s second quarter dividend, its dividend yield, its analysts’ latest recommendations, and its latest valuations.