LIN Stock: Linde's Outperformance in the Basic Materials Sector

Linde plc (LIN) is a global leader in industrial gases and engineering, with a market cap of $224.3 billion. Despite its strong performance, LIN stock has decreased 1.9% from its 52-week high and lagged behind the Materials Select Sector SPDR Fund's 6.9% increase over the past three months. However, LIN has outperformed the sector on a YTD basis, with shares up 14.2% compared to the sector's 9.7% gain. Analysts are bullish on LIN, with a consensus rating of "Strong Buy" and a mean price target of $515.74, a premium of 7.8% to current levels.

Title: Linde plc (LIN) Stock Analysis: Outperforming Despite Market Lag

Linde plc (LIN), a global leader in industrial gases and engineering, has seen mixed performance in recent months. Despite its strong fundamentals, the stock has decreased by 1.9% from its 52-week high of $487.49 [2]. Over the past three months, shares of LIN have risen by 3.1%, lagging behind the Materials Select Sector SPDR Fund (XLB) which increased by 6.9% over the same period [2]. However, on a year-to-date (YTD) basis, LIN stock has outperformed the sector, rising by 14.2% compared to XLB's 9.7% gain [2].

The company's second-quarter (Q2) 2025 earnings report showed an adjusted earnings per share (EPS) of $4.09, exceeding analyst estimates by $0.06 [1]. Revenues also increased by 2.3% compared to the same period last year [1]. Despite these positive earnings, shares fell marginally on August 1, as the Engineering segment's operating profit fell to $90 million, missing the estimate, and the EMEA segment saw lower volumes in key end markets like metals & mining and manufacturing despite higher pricing [2].

Linde's stock has been trading mostly below its 50-day and 200-day moving averages since mid-May [2]. This trend, along with the slight drop in earnings, has contributed to the recent decline in the stock price. However, analysts remain bullish on LIN's prospects. The stock has a consensus rating of "Strong Buy" from the 26 analysts covering the stock, with a mean price target of $515.74, a premium of 7.8% to current levels [2].

Several institutional investors have also shown confidence in LIN's future. Kestra Advisory Services LLC, for instance, lowered its holdings in LIN by 16.5% during the first quarter, but still owns 11,150 shares [1]. Meanwhile, Allstate Corp raised its holdings in LIN by 10.5% in the first quarter, now owning 15,716 shares [1]. Other institutional investors, such as 1832 Asset Management L.P. and Norinchukin Bank The, have also increased their stakes in LIN [1].

In conclusion, while LIN stock has faced some headwinds in recent months, its strong fundamentals and analyst optimism suggest that it remains a solid investment opportunity. The stock's YTD performance and positive earnings reports indicate that LIN is well-positioned to continue outperforming the broader sector.

References
[1] https://www.marketbeat.com/instant-alerts/filing-kestra-advisory-services-llc-sells-2203-shares-of-linde-plc-lin-2025-08-26/
[2] https://www.barchart.com/story/news/34519226/linde-stock-is-lin-outperforming-the-basic-materials-sector