12 Best ADR Stocks to Buy According to Hedge Funds

5. Linde plc (NASDAQ:LIN)

Number of Hedge Fund Holders: 70

Linde plc (NASDAQ:LIN) is an Ireland-based global industrial gases and engineering company. It produces and supplies atmospheric and process gases such as oxygen, nitrogen, argon, hydrogen, and carbon dioxide to a wide range of industries, including healthcare, chemicals, energy, manufacturing, and electronics. LIN also offers gas processing solutions and operates one of the world’s largest engineering businesses for gas production plants. It plays a key role in energy transition efforts through its investments in clean hydrogen and carbon capture technologies. LIN ranked fifth on our recent list of 7 Best Natural Resources Stocks to Invest in According to Hedge Funds.

Linde plc (NASDAQ:LIN) delivered another successful year in 2024, with EPS increasing 10% and EBIT margins expanding 190 basis points to 29.5%, along with a strong ROC of 25.9%. The company achieved a record sale of gas backlog of $7 billion within its total backlog of $10 billion, demonstrating strong future growth potential. In terms of operational achievements, LIN set a record for small on-site wins with 59 long-term agreements for 64 plants while also completing 18 packaged gas acquisitions with annualized revenues of approximately $200 million. The company’s 2025 guidance projects EPS growth of 4% to 7%, or 8% to 11% when excluding an estimated 4% currency headwind, maintaining its long-term double-digit EPS growth trajectory through a combination of capital allocation and management actions.

Linde plc (NASDAQ:LIN) continues to make progress on sustainability initiatives, with over 40% of total power consumption now being low carbon based, and increased its active low carbon and renewable energy consumption by 19% YoY. The company’s management remains focused on network density improvement, pricing power, and cost management while maintaining disciplined contract terms to ensure profitable growth regardless of macroeconomic conditions. Despite facing challenges from currency headwinds and flat industrial production growth expectations for 2025, management anticipates continued margin expansion of 20 to 50 basis points. With 70 hedge funds owning the stock and strong guidance in place, LIN is one of the best ADR stocks to buy.