As Tech Stocks Stumble Industrials Are A Buy in 2026 (And 3 Stocks Leading the Way) - 24/7 Wall St.[S&P 5006,904.00 +0.76%][Dow Jones49,822.00 +0.52%][Nasdaq 10025,032.40 +1.26%][Russell 20002,676.42 +1.08%][FTSE 10010,701.40 +1.20%][Nikkei 22557,668.00 +1.08%][Stock Market Live February 19, 2026: S&P 500 (SPY) Up Ahead of Key Fed News][Investing]# As Tech Stocks Stumble Industrials Are A Buy in 2026 (And 3 Stocks Leading the Way)### Quick ReadAir Products (APD) delivered 10% earnings growth in Q1 with $3.1 ...

Core Insights - The article discusses the Zacks Style Scores, which are designed to help investors identify stocks with the best chances of outperforming the market over the next 30 days [2] Group 1: Zacks Style Scores Overview - Zacks Style Scores are complementary indicators that rate stocks based on value, growth, and momentum characteristics [2][3] - Each stock is assigned a rating from A to F, with A indicating the highest potential for outperformance [3] Group 2: Value Score - The Value Score focuses on identifying stocks that are undervalued based on ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Group 3: Growth Score - The Growth Score evaluates a company's financial strength and future outlook, analyzing projected and historical earnings, sales, and cash flow [4] Group 4: Momentum Score - The Momentum Score identifies trends in stock prices or earnings outlooks, helping investors time their positions based on recent price changes and earnings estimate revisions [5] Group 5: VGM Score - The VGM Score combines the Value, Growth, and Momentum Scores, providing a comprehensive indicator for stock selection [6] Group 6: Zacks Rank Integration - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks yielding an average annual return of +23.86% since 1988 [7][10] - Stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B are recommended for maximizing returns [9] Group 7: Company Spotlight - Air Products and Chemicals - Air Products and Chemicals Inc. is rated 2 (Buy) on the Zacks Rank and has a VGM Score of B [11] - The company is projected to have year-over-year earnings growth of 8.2% for the current fiscal year, with upward revisions in earnings estimates [12] - The Zacks Consensus Estimate for Air Products' earnings has increased by $0.05 to $13.01 per share, with an average earnings surprise of +0.4% [12]

Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence through various research services [1][2] Zacks Style Scores - Zacks Style Scores rate stocks based on value, growth, and momentum characteristics, serving as complementary indicators to the Zacks Rank [3] - Each stock receives a rating from A to F, with A indicating the highest potential for outperforming the market [4] Value Score - The Value Style Score focuses on identifying undervalued stocks by analyzing financial ratios such as P/E, PEG, and Price/Sales [4] Growth Score - The Growth Style Score evaluates stocks based on projected and historical earnings, sales, and cash flow to identify sustainable growth opportunities [5] Momentum Score - The Momentum Style Score assesses stocks based on price trends and earnings estimate changes to identify favorable buying opportunities [6] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors seeking attractive value, growth, and momentum [7] Zacks Rank - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to assist investors in building successful portfolios [8] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +23.86% since 1988, significantly outperforming the S&P 500 [9] Stock Recommendation: Air Products and Chemicals (APD) - Air Products and Chemicals Inc. is rated 2 (Buy) on the Zacks Rank with a VGM Score of A, making it a notable option for momentum investors [12] - The stock has seen a 4.6% increase over the past four weeks, supported by positive earnings estimate revisions [12][13] - The Zacks Consensus Estimate for fiscal 2026 has risen by $0.05 to $13.01 per share, with an average earnings surprise of +0.4% [13]

With a market cap of $62.3 billion, Air Products and Chemicals, Inc. (APD) is a global supplier of atmospheric, process, and specialty gases, serving a wide range of industries including energy, chemicals, manufacturing, electronics, food, and healthcare across the Americas, Asia, Europe, the Middle East, and India. It also designs and manufactures advanced equipment for air separation, hydrocarbon processing, natural gas liquefaction, and liquid hydrogen and helium storage and transport. Shares of the A ...

Core Viewpoint - Income investors prioritize generating consistent cash flow, primarily through dividends, which significantly contribute to long-term returns [2]. Company Overview - Air Products and Chemicals (APD) is located in the Basic Materials sector and has experienced a price change of 14.77% since the beginning of the year [3]. - The company currently pays a dividend of $1.79 per share, resulting in a dividend yield of 2.53%, which is higher than the Chemical - Diversified industry's yield of 1.69% and the S&P 500's yield of 1.36% [3]. Dividend Performance - The annualized dividend of $7.16 has increased by 0.6% from the previous year, with a historical average annual increase of 6.01% over the last five years [4]. - The current payout ratio for Air Products and Chemicals is 58%, indicating that 58% of its trailing 12-month earnings per share (EPS) is distributed as dividends [4]. Earnings Growth Expectations - For the fiscal year, APD anticipates solid earnings growth, with the Zacks Consensus Estimate for 2026 at $13.01 per share, reflecting an expected increase of 8.15% from the previous year [5]. Investment Considerations - APD is viewed as a compelling investment opportunity due to its attractive dividend and strong Zacks Rank of 2 (Buy), despite the general trend of high-yielding stocks struggling during rising interest rates [6].

Company Overview - Air Products and Chemicals (APD) is part of the Basic Materials sector, which includes 254 individual stocks and holds a Zacks Sector Rank of 4 [2] - APD currently has a Zacks Rank of 2 (Buy), indicating a favorable outlook based on earnings estimate revisions and improving earnings outlooks [3] Performance Analysis - Year-to-date, APD has gained approximately 14.8%, outperforming the average gain of 13.2% for Basic Materials stocks [4] - In comparison to its specific industry, Chemical - Diversified, which has an average gain of 18.2% this year, APD is slightly underperforming [6] Industry Context - The Chemical - Diversified industry consists of 29 companies and is ranked 210 in the Zacks Industry Rank [6] - Another notable stock in the Basic Materials sector, Hochschild Mining PLC, has returned 20% year-to-date and has a Zacks Rank of 2 (Buy) [5][7]

Core Viewpoint - Air Products and Chemicals (APD) has reached a significant support level and is considered a good investment opportunity from a technical perspective, having recently broken through the 200-day moving average, indicating a long-term bullish trend [1]. Group 1: Technical Analysis - The 200-day simple moving average is a key indicator for establishing market trends across various financial instruments, serving as a support or resistance level [2]. - APD shares have increased by 7.6% over the past four weeks, reflecting positive momentum [2]. - The company currently holds a Zacks Rank 3 (Hold), suggesting potential for continued price appreciation [2]. Group 2: Earnings Estimates - There have been four upward revisions in APD's earnings estimates for the current fiscal year, with no downward revisions, indicating strong investor confidence [3]. - The consensus earnings estimate has also increased, reinforcing the bullish outlook for APD [3]. - The combination of positive earnings estimate revisions and the achievement of a key technical level positions APD favorably for potential gains in the near future [3].

Core Viewpoint - The article emphasizes the importance of consistent and reliable dividend growth as a key indicator of a company's fundamental health and disciplined capital allocation [1]. Group 1: Analyst Background - The analyst has been investing since September 2017 and has a long-standing interest in dividend investing since around 2009 [1]. - The analyst runs a blog called "Kody's Dividends," which documents their journey towards financial independence through dividend growth investing [1]. Group 2: Investment Philosophy - The investment strategy focuses on owning businesses that can consistently raise their dividends across various economic conditions [1]. - The article highlights the significance of dividend growth as a means to achieve financial independence [1].

Summary of the Conference Call Transcript Industry Overview - The report focuses on the **Chinese Chemical Distribution Industry** and highlights a **lull in demand** ahead of the **Lunar New Year**. - **January sales** for chemicals increased by approximately **3% year-over-year**, with chemicals outperforming paints. [1][19] - New orders for chemicals are modestly higher, while orders for paints remain flat, indicating a greater **inventory risk** in the paints sector. [1][19] Key Insights - **Cyclical confidence** has softened, suggesting that sales acceleration has likely bottomed out before the Lunar New Year. [1][19] - Manufacturing sectors, particularly **electronics and appliances**, are noted as a bright spot in the current market. [1][19] - The survey covered regional distributors in major cities such as **Shanghai, Wuxi, Changzhou, Nanjing, Linyi, and Qingdao**, representing a population of around **70 million** and targeting industrial activity in provinces with approximately **550 million** people. [19] Sales and Inventory Trends - Sales expectations are muted, with **Nanjing** showing the strongest trend and **Changzhou & Wuxi** exhibiting the weakest. [19] - The **order-to-inventory ratio** is lower, indicating that inventories are outpacing orders, which could lead to potential overstock issues. [4][10] - The **sales acceleration** for the upcoming month is expected to be muted, reflecting a cautious outlook among distributors. [4][10] Market Outlook - The overall market outlook for **hardware & tools** and **electronics & appliances** is flat, with over **50%** of respondents indicating stronger demand expected next month. [4][21] - The **paint end-market outlook** shows a decline in growth compared to previous surveys, with various sectors such as construction and electronics reporting weaker performance. [25] Company-Specific Insights - Companies with significant Asian footprints include **Albemarle (ALB)**, **Air Products (APD)**, and **3M (MMM)**, among others, with varying percentages of sales derived from the region. [6] - The report includes a list of companies rated by Jefferies, with recommendations ranging from **Buy** to **Hold** based on their performance and market conditions. [47][50] Conclusion - The Chinese chemical distribution market is currently experiencing a slowdown in demand, particularly in the paints sector, while manufacturing in electronics shows some resilience. - The cautious outlook and muted sales expectations suggest potential risks for companies heavily reliant on this market, necessitating close monitoring of inventory levels and order trends. [1][19][25]

Core Viewpoint - Air Products & Chemicals Inc reported strong first-quarter fiscal 2026 results, exceeding analyst expectations in both revenue and adjusted EPS Financial Performance - Revenue for the first quarter was $3.103 billion, a 6% increase from $2.932 billion year-over-year, surpassing the analyst estimate of $3.051 billion [1] - Adjusted EPS was $3.16, reflecting a 10% year-over-year increase and exceeding the top end of company guidance, as well as the analyst estimate of $3.04 [1][2] Operational Highlights - The CEO noted a 10% increase in adjusted EPS and a 12% improvement in adjusted operating income, despite challenges related to helium [2] - The company affirmed its full-year fiscal 2026 adjusted EPS guidance of $12.85 to $13.15, compared to the analyst estimate of $12.96 [2] - Fiscal 2026 capital expenditures are expected to be approximately $4.0 billion, with second-quarter adjusted EPS anticipated to range from $2.95 to $3.10, against an estimate of $3.02 [2] Market Reaction - Following the earnings announcement, Air Products shares increased by 0.7% to $274.40 [3] - Analysts adjusted their price targets for Air Products, with JP Morgan raising it from $260 to $280 and Wells Fargo from $250 to $270 [4]