Air Products and Chemicals (APD) Surges 8.0%: Is This an Indication of Further Gains?

Air Products and Chemicals (APD) shares rallied 8% in the last trading session to close at $293.18. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 2.7% loss over the past four weeks.

Air Products' gains are supported by its decision to exit investments that do not meet its return thresholds while streamlining its clean energy strategy in order to optimize its project portfolio. Moreover, its strategic partnership with Yara International for renewable ammonia from the NEOM Green Hydrogen Project strengthens its capabilities to support future demand. The company's commitment to portfolio optimization and focus on higher-return opportunities further result in investor confidence in itslong-term business outlook.

This seller of gases for industrial, medical and other uses is expected to post quarterly earnings of $3.35 per share in its upcoming report, which represents a year-over-year change of +8.4%. Revenues are expected to be $3.17 billion, up 5% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Air Products and Chemicals, the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on APD going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Air Products and Chemicals is part of the Zacks Chemical - Diversified industry. Koppers (KOP), another stock in the same industry, closed the last trading session 1% lower at $44.9. KOP has returned 10.1% in the past month.

Koppers' consensus EPS estimate for the upcoming report has changed -0.4% over the past month to $1.12. Compared to the company's year-ago EPS, this represents a change of -24.3%. Koppers currently boasts a Zacks Rank of #3 (Hold).

Zacks' Research Chief Names "Stock Most Likely to Double"

Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.

This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research