Here’s why Air Products and Chemicals (APD) is a high momentum stock

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium offers plenty of ways to do both.

The popular research service can help you become a smarter, more confident investor, giving you access to daily updates from the Zacks Ranking and Zacks Industry Rankings, Zacks #1 Ranking List, reports from stock research and premium stock screens.

It also includes access to Zacks style sheet music.

What are Zacks style scores?

Zacks Style Scores are a unique set of guidelines that rate stocks based on three popular investment types and were developed as complementary indicators for the Zacks Ranking. This combination helps investors choose the stocks most likely to beat the market over the next 30 days.

Each stock is assigned a letter grade of A, B, C, D or F based on its value, growth and dynamic qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the higher the score, the better the chance the stock will outperform.

Style Scores are divided into four categories:

Value Rating

Value investors love finding good stocks at good prices, especially before the broader market realizes a stock’s true value. Using ratios such as P/E, PEG, Price/Sales, Price/Cash Flow and many other multiples, the Value Style Score identifies the most attractive and discounted stocks.

Growth score

While good value is important, growth-oriented investors focus more on a company’s financial strength and health, as well as its future prospects. The Growth Style Score takes into account forecasted and historical earnings, sales and cash flow to uncover stocks that will experience sustainable long-term growth.

Momentum Score

Aggressive investors, who live by the saying “the trend is your friend”, are more interested in taking advantage of rising or falling trends in a stock’s price or earnings prospects. Using the one-week price change and monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM score

If you want a combination of all three style scores, then the VGM score will be your friend. It rates each stock based on their combined weighted styles, helping you find the companies with the most attractive value, the best growth forecasts and the most promising momentum. It is also one of the best indicators to use with Zacks Rank.

How Style Scores Work with Zacks Ranking

A proprietary stock rating model, Zacks Rank uses the power of earnings estimate revisions, or changes to a company’s earnings outlook, to help investors create a successful portfolio.

It’s been a big hit, with #1 stocks (Strong Buy) producing the highest average annual return of +25.41% since 1988. That’s more than double the S&P 500. But due to the large number of stocks that we assess, there are over 200 companies with a strong Buy Rank, plus another 600 with a #2 (Buy) Rank, on any given day.

That totals over 800 top-rated stocks, and it can be overwhelming trying to choose the best stocks for you and your portfolio.

This is where Style Scores come in.

You want to make sure you’re buying stocks with the highest probability of success, and to do that you’ll want to choose stocks with a Zacks #1 or #2 rating that also have A or B style scores. you like a stock that is only ranked #3 (Hold), it should also have scores of A or B to ensure as much upside potential as possible.

As mentioned above, the scores are designed to work with the Zacks ranking, so any changes in a company’s earnings outlook should be a deciding factor when deciding which stocks to buy.

For example, a stock with a rating of #4 (sell) or #5 (strong sell), even one with scores of A and B, will always have a lower earnings forecast, and a greater chance than the price. of its action also falls.

So the more stocks you have with a rank of #1 or #2 and scores of A or B, the better.

Stock to Watch: Air Products and Chemicals (APD)

Air Products and Chemicals Inc., based in Pennsylvania, manufactures industrial gases as well as a variety of polymers and performance chemicals. It also provides processing equipment. Air Products’ reporting segments are:

APD is a #3 (Hold) on the Zacks rank, with a VGM score of B.

Aggressive investors should take note of this commodity stock. APD has a Momentum Style Score of A, and the shares are up 19.3% over the past four weeks.

Three analysts upgraded their earnings estimate in the past 60 days for fiscal 2022, while Zacks’ consensus estimate rose $0.01 to $10.28 per share. APD also shows an average earnings surprise of 0.7%.

With a strong Zacks ranking and top Momentum and VGM style scores, APD should be on the investor shortlist.

Zacks names ‘only one best choice for doubling up’

From thousands of stocks, 5 Zacks experts have each picked their favorite to skyrocket by +100% or more in the coming months. Of these 5, Research Director Sheraz Mian selects one to have the most explosive advantage of all.

It’s a little-known chemical company that’s up 65% year-on-year, but still very cheap. With relentless demand, rising earnings estimates for 2022 and $1.5 billion for stock buybacks, retail investors could step in at any time.

This company could rival or surpass other recent Zacks stocks which are expected to double like Boston Beer Company which jumped +143.0% in just over 9 months and NVIDIA which jumped +175.9% in one year .

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Air Products and Chemicals, Inc. (APD): Free Inventory Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Alejandro L. Myatt