APD’s stock performance in 2018
Air Products and Chemicals’ (APD) stock performance has remained muted so far in 2018. On a YTD (year-to-date) basis, the stock has fallen 3.3%. APD’s peers Praxair (PX) and Celanese (CE) have fallen 6.8%, and 7.8%, respectively, while Eastman Chemical (EMN) has risen 13.3% in the same period.
APD’s stock price reached an all-time high of $174 before it fell to its current level. The fall in the stock’s price was primarily the result of the prevailing volatility in the stock market. Bearish sentiments in the market related to rate hike fears and ongoing trade war worries related to tariffs and political tensions have dragged the stock down.
However, positive developments in APD’s business, such as its new contract deals, its investments in two joint ventures in China, its acquisitions of ACP and Shell’s coal gasification technology business, and its Syngas supply agreement for BPCL’s new petrochemical project in India, are expected to help APD reclaim its lost ground once the market settles down and begins its recovery. The company’s upcoming fiscal 2Q18 earnings could be a turning point for its stock, deciding which direction it will move.
The fall in APD’s stock price has resulted in the stock trading 3.1% below its 100-day moving average price of $163.72, indicating a trend reversal. However, APD’s 14-day relative strength index of 40 indicates that the stock is neither overbought nor oversold. An RSI of 70 or above means that a stock has temporarily moved into an overbought position, and an RSI of 30 or below shows that a stock has been oversold.
Investors can indirectly hold APD by investing in the iShares Edge MSCI Multifactor Materials ETF (MATF), which has invested 3.1% of its portfolio in Air Products and Chemicals as of March 27, 2018.