Air Products and Chemicals, Inc. (APD), headquartered in Allentown, Pennsylvania, offers atmospheric gases, process and specialty gases, equipment, and related services. Valued at $70.3 billion by market cap, the company develops, engineers, builds, owns, and operates some of the world's largest industrial gas projects, including gasification projects for producing high-value power, fuels, and chemicals.
Shares of this world-leading industrial gases company have outperformed the broader market over the past year. APD has gained 45.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 22.3%. In 2025, APD stock is up 9%, surpassing SPX’s 4% rise on a YTD basis.
Zooming in further, APD’s outperformance is also apparent compared to iShares U.S. Basic Materials ETF (IYM). The exchange-traded fund has gained about 6.1% over the past year. Moreover, APD’s returns on a YTD basis outshine the ETF’s 7.8% gains over the same time frame.
APD's outperformance is fueled by strategic investments in high-return projects, new business agreements, acquisitions, successful execution of growth initiatives, and productivity enhancements. Additionally, favorable pricing and strong merchant demand are further accelerating volume growth, while ongoing productivity and cost improvement programs support margin expansion.
On Feb. 6, APD shares closed down more than 1% after reporting its Q1 results. Its adjusted EPS came in at $2.86, up 1.4% from the year-ago quarter. The company’s revenue stood at $2.9 billion, down 2.2% year over year.
For the current fiscal year, ending in September, analysts expect APD’s EPS to grow 2.1% to $12.69 on a diluted basis. The company’s earnings surprise history is impressive. It beat or matched the consensus estimate in each of the last four quarters.
Among the 22 analysts covering APD stock, the consensus is a “Moderate Buy.” That’s based on 13 “Strong Buy” ratings, and nine “Holds.”
This configuration is more bullish than two months ago, with 12 analysts suggesting a “Strong Buy.”
On Feb. 7, Evercore ISI analyst Eric Boyes maintained a “Buy” rating on APD with a price target of $375, implying a potential upside of 18.6% from current levels.
The mean price target of $352 represents an 11.4% premium to APD’s current price levels. The Street-high price target of $390 suggests an upside potential of 23.4%.
