Linde's post-earnings slide is a buying opportunity. Here's why
Article excerpt
Shares of industrial gas giant Linde dropped Friday despite reporting better-than-expected profits and sales. Linde remains a quiet beneficiary of the artificial intelligence boom, but problems facing part of its healthcare business are drowning out those benefits in the final trading session of the week. Our faith in Linde is unshaken, so Friday's pullback looks more like a buying opportunity than a reason to head for the exits. Revenue in the second quarter ended June 30 rose 9.3% to $9.29 billion, surpassing the $8.99 billion consensus, according to LSEG. Adjusted earnings per share (EPS) totaled $4.50, beating the LSEG consensus by 2 cents and rising 10% year over year. LIN YTD mountain Linde's year-to-date stock performance. Linde shares slid more than 5.5% Friday, on pace for its worst day since the market's tariff sell-off in April 2025. The stock entered Friday's session down about 7% from its record close of $546.64 on July 2. Despite its recent pullback, Linde is still up 19% year to date, outperforming both the S & P 500' s 8.7% gain and a 14% advance for the index's materials sector. Bottom line This isn't the cleanest quarter that Linde has reported in our five years owning the stock. But it's plenty good enough to keep us invested and singing the company's praises as a reliable operator with consistent earnings growth in any economic environment. We certainly...
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On that note, Linde said Friday it planned to spend $1 billion to expand an on-site supply complex in Phoenix to support its semiconductor customer's own manufacturing expansion.
