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Praxair’s Stock Performance since Its 3Q17 Earnings

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Praxair to announce 4Q17 earnings

In a press release on January 9, 2018, Praxair (PX) said it would announce its 4Q17 and fiscal 2017 earnings on January 25, 2018, before the market opens. There will be a teleconference that same day at 11:00 AM EST to discuss the results.

In this series, we’ll look at PX stock and its performance since the company’s 3Q17 earnings release. We’ll look at analysts’ revenue and EPS (earnings per share) estimates, analysts’ recommendations, the company’s updated short interest position, and its latest valuation.

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Praxair stock since 3Q17 earnings release

Praxair announced its 3Q17 earnings on October 27, 2017. Since then, the stock has risen 9.7% and managed to outperform the broad-based SPDR S&P 500 ETF (SPY), which has risen 8.7%. Praxair also outperformed its peer Air Products & Chemicals (APD), which rose 5.4% in the same period. Praxair’s strong performance is primarily driven by positive developments in its business and positive sentiments in the overall market.

During 4Q17, Praxair started up three new vacuum pressure swing adsorption plants in South Korea. Praxair and GE Aviation opened a new advanced jet engine coatings facility in Ellisville. Praxair also increased its prices for helium and other gases, which was effective on January 1, 2018. All these positive developments could have caused the stock to rise.

Praxair’s moving average and RSI

The substantial gains in Praxair stock have resulted in PX trading 12.7% above the 100-day moving average of $145.69, indicating an upward trend in the stock. Praxair’s 14-day RSI (relative strength index) of 67 means the stock is neither overbought nor oversold. An RSI of 70 and above indicates that a stock has been overbought, while an RSI of 30 and below suggests a stock has been oversold.

Investors can indirectly hold Praxair by investing in the Guggenheim S&P 500 Equal Weight Materials ETF (RTM), which has invested 4% of its portfolio in Praxair. The fund also provides exposure to LyondellBasell (LYB) and Eastman Chemical (EMN) with weights of 4.1% and 3.9%, respectively, as of January 15, 2018.

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