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Analyzing APD’s Stock Performance in 2019

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Stock performance

So far, Air Products and Chemicals’ (APD) stock performance has been strong in 2019. As of March 28, Air Products and Chemicals has gained 18.8% in 2019. Air Products and Chemicals has outperformed the broader market S&P 500 ETF (SPY). SPY has returned 12.30% during the same period. Linde (LIN), Eastman Chemical (EMN), and Celanese (CE) have risen 11.3%, 3.8%, and 9.2%, respectively, on a YTD basis.

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Air Products and Chemicals reported lower-than-expected first-quarter earnings. The company reported an adjusted EPS of $1.86—compared to analysts’ expectations of $1.87. Air Products and Chemicals reported revenues of $2.2 billion, which implies that the revenues remained flat on a year-over-year basis. However, the company’s acquisition of ACP Europe SA and new order flows are expected to drive future growth. For fiscal 2019, Air Products and Chemicals expects its adjusted EPS to be $8.05–$8.30, which implies 10% growth on a YoY basis. All of these positive developments increased the company’s stock prices.

Moving averages

The strong gain in Air Products and Chemicals’ stock price caused the stock to trade 14.3% above its 100-day moving average price of $166.33, which indicates an upward trend. However, Air Products and Chemicals’ 14-day relative strength index of 78 indicates that the stock has temporarily moved into an overbought position. Investors should be cautious because there could be a sell-off. An RSI of 70 or above indicates that a stock has temporarily moved into an overbought position, while an RSI of 30 or below indicates that the stock has been oversold.

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