(PX) - Strong Stock Pick - surprising to the upside on 11 occasions, while matching estimates in 5 quarters

Praxair, Inc. (PX), which was first featured as a Growth and Income pick back in mid December, continues to perform quite well. The company met or topped analysts earnings expectations for the past 16 quarters. After posting solid results for the second quarter, PX upped its 2006 earnings per share guidance. The company is currently yielding 1.8%, with a five-year average dividend yield of 1.5%. Full Analysis Praxair, Inc. supplies atmospheric, process and specialty gases, high-performance coatings and related services and technologies. The company has operations in 40 countries and serves a wide range of industries including food and beverages, healthcare, semiconductors, chemicals, refining, primary metals and metal fabrication, as well as other areas of general industry. PX, which was first highlighted as a Growth and Income pick in mid December, delighted investors by consistently meeting or beating analysts earnings expectations. It's good to see that some things never change. Over the past 16 quarters, the company has yet to report an earnings disappointment, surprising to the upside on 11 occasions, while matching estimates in 5 quarters. On Jul 26, PX posted profits of $247 million, or 75 cents per share. Compared to the prior-year period, earnings were up a healthy 19.1%. The consensus estimate called for 70 cents per share. Revenues advanced 8.3% to $2.08 billion, compared with $1.92 billion a year earlier. Chairman and Chief Executive Officer Dennis H. Reilley stated, While some macro-economic indicators point to a slowdown, we have not seen any significant decline in demand from our customers. New business development, higher prices and better productivity fueled the strong quarter. In addition to releasing solid results for the second quarter, the company upped its 2006 earnings per share projection to between $2.85 and $2.90, versus its previous forecast between $2.74 and $2.82. Revenue is expected to rise 10%. Looking ahead to 2007 and 2008, PX stated that a growing backlog of new projects across all geographic regions should drive sustainable earnings growth. The company increased revenues and grew profits for the past three years, while expanding gross margins for six years running. Over the past 30 days, seven analysts revised their earnings estimates upward for 2006, while four did so for 2007. Earnings per share are projected to grow 12% over the next 3-5 years, with the industry expected to grow at a 9% clip. The Board of Directors declared a quarterly dividend of 25 cents per share on Jul 25. The dividend is payable Sep 15 to shareholders of record as of Sep 7. PX is currently yielding 1.8%, with a five-year average dividend yield of 1.5%. The company�s return on equity is greater than that of the industry average�22% compared to 16%. PX is a Zacks #2 Rank (Buy) stock. Zacks #2 Rank stocks have generated an average annual return of 21.6% since 1988. Because the Zacks Rank has a market cap bias, Growth & Income investors may find a greater number of large-cap stocks by considering both Zacks #1 Rank (Strong Buy) and Zacks #2 Rank (Buy) stocks in their selection criteria. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. | Blog Home| VitalStocks Home