So far, Air Products and Chemicals (APD) stock has disappointed investors in 2017. As of September 19, 2017, Air Products and Chemicals has returned 4.60%. It has underperformed the broad-based SPDR S&P 500 ETF (SPY), which has returned 11.80%. Air Products and Chemicals’ peer Praxair (PX) has also outperformed with a return of 16.50%.
Stock movement in 2017
Air Products and Chemicals’ stock price fell after it posted lower-than-expected earnings in fiscal 1Q17. Its failed bid to acquire Yingde Gases didn’t help the stock much. During this period, the stock hit a low of $134.30. However, Air Products and Chemicals stock recovered from its low after beating analysts’ earnings expectations in fiscal 2Q17 and 3Q17. Air Products and Chemicals also revised its adjusted EPS for fiscal 2017 to $6.20–$6.25—compared to the earlier range of $6.00–$6.25. The company’s positive developments like winning new business contracts, the formation of a joint venture with Linde, and new product launches helped the stock price increase. The trend is expected to continue in the rest of 2017.
Moving average and RSI
The strong performance in fiscal 2Q17 and 3Q17 caused Air Products and Chemicals’ stock price to trade above its 100-day moving average price. As of September 19, 2017, Air Products and Chemicals was trading 3.70% above the 100-day moving average price, which indicates an upward trend in the stock. Its RSI (relative strength index) of 67 indicates that the stock isn’t overbought or oversold.
Investors can hold Air Products and Chemicals indirectly by investing in the ProShares Ultra Basic Materials (UYM). UYM has invested 3.30% of its portfolio in Air Products and Chemicals. The fund’s other holdings include Monsanto (MON) and LyondellBasell (LYB) with weights of 5.20% and 3.20%, respectively, as of September 19, 2017.