10 Best Performing Large Cap Stocks to Buy According to Analysts

7. Air Products and Chemicals, Inc. (NYSE:APD)

1-Year Performance: 35.22%

Number of Hedge Fund Holders: 60

Analyst Upside Potential: 15.45%

Air Products and Chemicals, Inc. (NYSE:APD) is a leading industrial gas company that provides essential gases and related equipment to various industries. It produces and supplies gasses including oxygen, nitrogen, hydrogen, and helium to manufacturing, food processing, and electronics industries. The company is also involved in developing and operating clean hydrogen projects to support the transition to low-carbon energy, especially in the transportation and industrial sectors.

On February 25, John Roberts, an analyst at Mizuho Securities maintained a Buy rating on the stock with a price target of $385. The analyst noted that the company’s new CEO has announced significant project write-downs of $3 billion. Despite the substantial amount, these write-downs do not affect its adjusted EPS targets. Roberts believes this move will further reduce the capital expenditure, particularly for the projects that have not been completed yet. Moreover, Air Products and Chemicals, Inc. (NYSE:APD) continues to focus on major clean hydrogen projects in Alberta, NEOM, and Louisiana. The analyst believes these projects will leverage cheap North American natural gas and will also take advantage of the credits that offset carbon capture and sequestration operating expenses. It is one of the best-performing large-cap stocks to buy according to analysts.

ClearBridge Large Cap Value Strategy stated the following regarding Air Products and Chemicals, Inc. (NYSE:APD) in its Q3 2024 investor letter:

“Air Products and Chemicals, Inc. (NYSE:APD) has also made strong contributions recently, delivering operationally and announcing a major offtake agreement for its NEOM green hydrogen project in June. Strong fundamentals for APD are shining through a soft Chinese industrial economy, and it continues to shore up the strength of its core industrial gases franchise, committing to not invest additional capital on big projects until they soak up existing capacity, putting a management structure in place to allow for more accountability and announcing board-initiated succession planning that will help built investor confidence for the future. The company is also tightening up its operational focus by divesting non-core assets and streamlining operations.”