4 reasons to buy Praxair
The company is well-positioned to supply industrial gases to growing economies.
Praxair mainly produces atmospheric and process gases, but it also makes metallic and ceramic coatings and powders. Another segment of the company builds equipment to make industrial gases.
Wall Street analysts are high on this stock, with 14 buy recommendations published based on projections of sales increases of 12.7% this year and 8.3% next year. Double-digit earnings increases of 17.5% this year, 12.4% next year and a five-year annual compounded EPS growth rate of 12.74% shouldn't be ignored.
Investor sentiment is high, with the CAPS members on Motley Fool voting 629 to 23 that the stock will beat the market. The All Stars are very much in agreement with an overwhelming vote of 164 to 2. Fool notes that, of the Wall Street columnists it follows, there have been 15 positive articles and zero negative.
Now for the real news. Barchart's technical indicators have 12 out of 13 buy signals for an overall 96% buy signal. The stock has appreciated 10.63% in this flat market, making 16 new highs in the past 20 trading sessions. The Relative Strength Index is 68.84% and rising. The stock recently traded at $87.98, well above its 50-day moving average of $82.25.
The points in favor of Praxair:
- It's in an essential industry, and has a supply network already in place in the key markets of China, India, Germany as well as North and South America.
- Overwhelming and positive investor sentiment.
- Wall Street brokerages have published buy recommendations to their clients.
- Recent price momentum with a Barchart 96% technical buy signal and a 68.84% Relative Strength index that is rising.
Disclosure: No positions in the stock mentioned at the time of publication.
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The solid report comes a month after the retailer closed all of its Canadian operations.
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