LIN - Linde: A Deserved Valuation Premium Margin Growth Persists

2024-05-20 16:14:51 ET

Summary

• Linde plc is the largest industrial gas company in the world, with strong sales and a wide range of industries it serves.
• Despite a slightly light Q1 report, Linde's management expects a significant increase in adjusted EPS for FY 2024 with continued strong margins.
• Analysts project steady EPS growth for Linde over the next few years, though sell side downgrades have come along with a pullback in shares since the end of the first quarter.
• I highlight key price levels to watch on the chart as the stock nears key support.

The Materials sector has performed well on an absolute basis for much of the year, but relative to the S&P 500 (SPY), the Materials Select Sector SPDR Fund ETF (XLB) has given back some of its alpha that was garnered from early February through the finish of the first quarter. Despite strength in many resource commodities, including base and precious metals, gasses, and chemicals have been less exciting....

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