We came across a bullish thesis on Air Products and Chemicals, Inc. on X.com by @MoneyShow. In this article, we will summarize the bulls’ thesis on APD. Air Products and Chemicals, Inc.’s share was trading at $275.67 as of February 27th. APD’s trailing and forward P/E were 33.70 and 21.19 respectively according to Yahoo Finance.
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Air Products and Chemicals, Inc. provides atmospheric gases, process and specialty gases, equipment, and related services in the Americas, Asia, Europe, the Middle East, India, and internationally. APD is drawing renewed attention as a high-quality industrial gas leader trading at a discount after shares fell more than 6% following news of advanced talks with Yara International regarding two major projects in the U.S. and Saudi Arabia.
The market reaction appears disconnected from fundamentals, as management reaffirmed that the discussions would not affect its previously issued 2026 adjusted EPS guidance of $12.85 to $13.15, implying 7% to 9% growth despite ongoing helium headwinds.
The Louisiana project, estimated at $8 billion to $9 billion with a final investment decision targeted by mid-2026 and completion by 2030, will see approximately 75% of development capital allocated to the core industrial gas complex, with ammonia production and distribution assets intended for sale to Yara. In Saudi Arabia, Yara is negotiating marketing rights for renewable ammonia tied to the NEOM Green Hydrogen Project, with agreements expected in 2026 and initial supply in 2027.
Looking ahead, after roughly $4 billion in maintenance and growth capex in 2026, spending is projected to decline toward $2.5 billion annually as major builds conclude, supporting stronger free cash flow. At 18.7x next-twelve-month earnings and 15.5x consensus 2028 EPS, APD trades below its largest peers despite operating a capital-intensive but resilient business built on long-term contracts and essential inputs that represent a small share of customer costs. With a 43-year dividend growth streak and a 2.9% yield, APD offers an attractive risk-reward profile with a $360 target.
Previously, we covered a bullish thesis on Eastman Chemical Company (EMN) by Necessary-Damage5658 in November 2024, which highlighted export control tailwinds, regulatory compliance strength, and market share gains in key end markets. EMN’s stock price has depreciated by approximately 25.29% since our coverage due to mixed financial results and cautious analyst outlooks.. @MoneyShow shares a similar view but emphasizes on valuation support and project execution at Air Products and Chemicals, Inc. (APD).
Air Products and Chemicals, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held APD at the end of the fourth quarter which was 51 in the previous quarter. While we acknowledge the risk and potential of APD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than APD and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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Disclosure: None.
