Linde plc (LIN)
NASDAQMaterialsChemicals - SpecialtySnapshot 2026-09-04
$477.57-0.96%
Close 2026-09-04 · 1-day change
NASDAQMaterialsChemicals - SpecialtySnapshot 2026-09-04
Intact: The reason to own it still holds.
Linde is the largest industrial gas company with steady 7% to 9% EPS growth guidance for 2026. It invests $5B to $5.5B in capital expenditures to support growth and maintenance. Recent beats and raised guidance show strong execution. Partnerships like SpaceX add growth potential.
Growth could slow if industrial demand weakens or if capital spending fails to generate returns. High valuation at nearly 32 PE risks disappointment if EPS growth misses targets.
The price is about 33% above our fair value near $406 and 29% below the Street median target of $575. Analysts expect about 7% revenue growth, which aligns with management guidance, but the valuation is expensive versus fundamentals.
Breaks if: CAPEX falls below $5.0B in FY26
Breaks if: EPS falls below $17.60 in FY26
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on consistent earnings growth. The current thesis is intact, supported by management's commitment to increasing adjusted diluted EPS and capital expenditures.
The market appears to have priced in a durable premium compared to peers, indicating expectations for continued strong performance. There is a moderate expectations gap, suggesting that some growth is anticipated but not fully reflected in current valuations.
Fundamentals are likely to remain stable, with management on track to achieve its growth targets. Recent financial performance has been strong, although there is a low probability of missing estimates, which could pose a risk.
The long-term thesis hinges on management's ability to maintain guidance and deliver on growth targets. Key factors include inflation trends and the performance of sector bellwethers, which could influence LIN's momentum.
The most important moves since the prior daily snapshot.
Mixed, the news cuts both ways. Linde plans to invest $1 billion in Arizona. This supports growth in the electronics market. However, the healthcare unit faces challenges that may hinder growth. The company missed expectations for Q2 EPS growth, despite beating estimates.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Linde aims to achieve a 7% to 9% increase in adjusted diluted earnings per share for the full year 2026.
Breaks if: Q2 EPS falls below $4.40
Overall, LIN shows a solid setup for the next 1 to 3 years, with management executing well on its priorities. Not investment advice.