Praxair stock performance
As we just completed the first half of 2017 and stepped into the second half of the year, we see that Praxair (PX) has made handsome gains. It has returned 13.2%, outperforming the broad-based SPDR S&P 500 ETF (SPY), which rose 8.6% in the same period. In contrast, Praxair’s peer Air Products & Chemicals (APD) hasn’t been able to keep pace with PX and has fallen 0.85% so far in 2017.
Praxair’s strong performance was boosted by its 1Q17 earnings, which beat analysts’ estimates, followed by the increase in PX’s EPS (earnings per share) guidance for fiscal 2017, which helped the stock rise. Also, positive developments in its business due to winning several new business deals, expanding, and introducing new products have helped the cause. The big positive came from the announcement of its merger with Linde AG.
Moving average and relative strength index
Praxair’s gains led to PX stock trading 6.9% above its 100-day moving average price of $124.05, indicating an upward trend in the stock. PX’s 52-week low is $110.12, and its 52-week high is $138.69. Its 14-day RSI (relative strength index) of 50 indicates that the stock is neither overbought nor oversold. An RSI of 70 and above is an indication that the stock has moved into overbought territory, while an RSI of 30 and below is an indication that the stock has moved into oversold territory temporarily.
You can indirectly hold Praxair by investing in the Materials Select Sector SPDR ETF (XLB). XLB has invested 6.4% of its portfolio in Praxair. The top holdings of the fund include Dow Chemical (DOW) and DuPont (DD) with weights of 12.0% and 11.9%, respectively, as of July 5, 2017.
In the rest of this series, we’ll take a look at Praxair’s current debt position, interest expense, ability to service its debt, analyst recommendations, and the latest valuations.