UBS’ Best Stocks In The AI, Growth & Low Rates Era: Top 29 US Stocks

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

Number of Hedge Fund Investors In Q2 2024: 47

UBS’ Sector Rating: Neutral

Sector: Materials 169

Air Products and Chemicals, Inc. (NYSE:APD) is an industrial raw materials firm that sells gasses. It is a diversified firm with a presence in Asia, North America, Europe, and other regions. As the global economy continues to reel from the impact of high interest rates and inflation, the firm’s diversified global base has worked against it. For the nine months ending in June 2024, Air Products and Chemicals, Inc.’s (NYSE:APD) sales in Asia, Europe, the Middle East, and the Americas have fallen annually. Consequently, the shares have gained 14.4% year to date and would have gained just 4% had it not been for a catalyst in October. This saw the stock rise 9.52% after activist investor Mantle Ridge acquired a $1 billion stake in the company. This means that in the future, Air Products and Chemicals, Inc.’s (NYSE:APD) stock will also depend on the turnaround efforts at the company and whether they unlock value for shareholders.

ClearBridge Investment mentioned Air Products and Chemicals, Inc. (NYSE:APD) in its Q3 2024 investor letter. Here is what the fund said:

“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.”