Praxair positioned for the recovery
I'm adding Praxair Inc. (PX) to the Barchart Van Meerten New High portfolio.
The reason I like this stock is that the company is already positioned in their markets to supply industrial gases to the growing economies. They are established with customers in China, India and Germany and they're the second largest in their industry with 26,000 employees world wide.
Praxair is also one of the largest industrial gases companies in North and South America. Their primary products for its industrial gases business are atmospheric gases and process gases. The company's surface technology segment, operated through Praxair Surface Technologies, Inc., supplies wear-resistant and high-temperature corrosion-resistant metallic and ceramic coatings and powders. The company also designs, engineers and builds equipment that produces industrial gases through its global supply systems.
Wall Street analysts are high on this stock with 14 buy recommendations published based on projections of sales increases of 12.70% this year and 8.30% next year. Double digit earnings increases of 17.50% this year, 12.40% next year and a 5 year annual compounded EPS growth rate of 12.74% shouldn't be ignored.
Investor sentiment is extremely 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 over whelming vote of 164 to 2. Fool notes that of the Wall Street columnists they follow there have been positive articles 15 to 0.
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 last 20 trading session. 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 Inc. (PX) :
1 - Positioned in an essential industry with a world wide supply network already in place in the key markets of China, India, Germany as well as North and South America
2 - Overwhelming and positive investor sentiment
3 - Wall Street brokerages have published buy recommendations to their clients
4 - Recent price momentum with a Barchart 96% technical buy signal and a 68.84% Relative Strength index that is rising
Jim Van Meerten is an investor who writes on investing here and on Barchart Portfolio Blogs. Please leave a comment below or email JimVanMeerten@gmail.com.
Disclosure: No positions in the stock mentioned at the time of publication