Growing concerns regarding the spread of the COVID-19 Delta variant, coupled with decelerating economic growth, caused all three major U.S. benchmark indices to tumble lately. However, the market retreat appears temporary because the indexes rebounded sharply yesterday…
The S&P 500 recorded its best day in nearly four months yesterday, climbing 1.5% intraday to close at 4,323.06. Likewise, the tech-heavy Nasdaq Composite gained 1.6% intraday to close at 14,498.88 yesterday. The Dow Jones Industrial Average was up 549.95 points yesterday, representing a 1.6% increase.
Wall Street analysts expect corporate earnings growth to be a significant market driver in the near term. This, along with continued capital inflows in the corporate sector, we think should allow Linde plc (LIN – Get Rating), Lowe’s Companies, Inc. (LOW – Get Rating), and ABB Ltd (ABB – Get Rating) to maintain their growth trajectory in the second half of 2021.
Linde plc (LIN – Get Rating)
LIN is an industrial gas company that operates primarily in North and South America, Europe, the Middle East, Africa, and the Asia Pacific. The company provides atmospheric gases and process gases and builds equipment that produces industrial gases. Its product line also includes gaseous medication and related medical products and devices.
On July 15, LIN opened a new liquid hydrogen plant in Texas. This is expected to make its supply chain more efficient and increase its capacity to serve the rising demand for conventional and clean hydrogen.
In March, LIN was selected by Norwegian ferry operator Norled to supply liquid hydrogen and related infrastructure to aid the world’s first hydrogen-powered ferry. This contract should contribute significantly to LIN’s revenues.
LIN’s sales increased 7.5% year-over-year to $7.24 billion in the fiscal first quarter ended March 31. Its operating profit stood at $1.21 billion, up 65.5% from the same period last year. Its net income grew 71% from its year-ago value to $980 million. The company’s EPS increased 73.8% year-over-year to $1.86.
A $7.33 billion consensus revenue estimate for its fiscal third quarter (ending September 2021) indicates a 9.6% increase year-over-year. The Street expects the company’s EPS to rise 16.7% from the prior-year quarter to $2.51 in the current quarter. LIN also has an impressive earnings surprise history; it beat the consensus EPS estimates in each of the trailing four quarters.
LIN has gained 9.9% over the past six months to close yesterday’s trading session at $290.37. The stock has gained 17.3% over the past year.
LIN has an overall B rating, which equates to Buy in our proprietary POWR Ratings system. In addition, LIN has an A grade for Momentum, and a B grade for Growth, Stability, Sentiment, and Quality. It is ranked #36 of the 99 stocks in the Chemicals industry. Click here to view additional LIN ratings for Value.
Lowe’s Companies, Inc. (LOW – Get Rating)
LOW is a home improvement retailer that offers construction, maintenance, repair, remodeling, and decorating products. The company also provides installation services through independent contractors in various product categories, extended protection plans, and in-warranty and out-of-warranty repair services.
On May 3, LOW launched its…
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