Should you consider adding air products and chemicals (APD)?

ClearBridge Investments, an investment management firm, has released its Q2 2024 investor letter, the “ClearBridge Dividend Strategy.” A copy of the letter can be downloaded here . In the second quarter, the S&P 500 Index rose 4.3%, for a half-year gain of 15.3%. The quarter’s performance was almost entirely driven by the information technology (or “IT”) sector. The firm has an optimistic view of the economy and does not expect a near-term recession despite a slowdown in activity. During the second quarter, the strategy underperformed its S&P 500 benchmark. The strategy gained four of the 11 sectors in which it was invested during the quarter on an absolute basis. The IT sector was the largest positive contributor, while the materials and financials sectors detracted. Stock selection and sector allocation detracted, relatively speaking. Please see the strategy’s top five holdings for its top picks for 2024.

ClearBridge Dividend Strategy highlighted stocks like Air Products and Chemicals, Inc. (NYSE: APD) in its Q1 2024 Investor Letter. Headquartered in Allentown, Pennsylvania, Air Products and Chemicals, Inc. (NYSE: APD) provides atmospheric, process and specialty gases, equipment and related services. Air Products and Chemicals, Inc. (NYSE: APD) has a one-month return of -6.41%, and its shares have lost 12.14% of their value over the past 52 weeks. On July 3, 2024, Air Products and Chemicals, Inc. (NYSE: APD) stock closed at $253.00 per share with a market cap of $56.243 billion.

ClearBridge Dividend Strategy said the following about Air Products and Chemicals, Inc. (NYSE: APD) in its Q2 2024 investor letter:

“We have increased our position in Air Products and Chemicals, Inc. (NYSE:APD) after the company announced a major purchase agreement for its Neom green hydrogen project. Investors were concerned about the risks inherent in APD’s hydrogen plant backlog – this contract should allay those concerns and validate the company’s strategy. At the same time, we cut Mondelez to manage potential headwinds from rising raw material costs and Microsoft to capture some recent gains.

A line of workers in a refinery wearing protective suits and masks, supervising the production process of specialty gases.

Air Products and Chemicals, Inc. (NYSE:APD) is not on our list of the 31 most popular stocks among hedge funds. According to our database, 51 hedge fund portfolios held Air Products and Chemicals, Inc. (NYSE:APD) at the end of the first quarter, up from 42 in the prior quarter. For the second fiscal quarter of 2024, Air Products and Chemicals, Inc. (NYSE:APD) reported earnings per share of $2.85, which exceeded the high end of previous guidance. This represents a 4% improvement from the prior year, driven by strong results in the Americas and Europe. While we recognize the potential of Air Products and Chemicals, Inc. (NYSE:APD) as an investment, our conviction lies in the belief that AI stocks have greater promise to deliver higher returns, and in a shorter time frame. If you’re looking for an AI stock that’s as promising as NVIDIA but trades at less than 5x earnings, check out our report on the the cheapest AI stock.

We discussed Air Products and Chemicals, Inc. (NYSE:APD) in another article and shared The London Company Large Cap Strategy’s views on the company in Q1 2024. Additionally, please visit our Q1 2024 Hedge Fund Investor Letters page for more investor letters from hedge funds and other prominent investors.

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Disclosure: None. This article was originally published on Insider Monkey.