Air Products is a leading producer of industrial gases. It provides atmospheric and process gases and related equipment to refining and petrochemicals, metals, electronics, and food and beverage companies. Air Products is also the world's leading supplier of LNG process technology and equipment. The company has approximately 21,300 employees and operates in over 50 countries. APD shares are a component of the S&P 500.

The major indices are mixed at midday on Tuesday as stocks take a breather following recent gains. The Fed rate meeting has started and new Chairman Kevin Warsh will have his debut press conference tomorrow. Crude oil is down another 3% at $77 per barrel. The yield on the 10-year note is at 4.45%. The VIX volatility index is at 16.

Since its founding in 1940, Air Products has become one of the leading industrial gas suppliers globally, with operations in 50 countries and 19,000 employees. The company is the world's largest supplier of hydrogen and helium. It has a unique portfolio serving customers across industries, including chemicals, energy, healthcare, metals, and electronics. Air Products generated roughly $12 billion in revenue in fiscal 2025.

When it comes to investing in sectors of the S&P 500, we think it makes sense to focus on the few key groups that can actually make a difference in terms of earnings and portfolio performance. As an example, the Real Estate sector, which accounts for about 2% of S&P 500 capitalization, contributed only 1% of S&P 500 EPS during the recently completed 4Q EPS period. The Materials is another 2% market weight that generates a thin 2% of total earnings. While both of these sectors are forecast to generate double-digit growth in 1Q26, we don't think that clients should be spending a lot of time on them, given the sectors low weights in the index. The groups that really make a difference include Information Technology, which accounted for 32% of the last quarter's S&P 500 earnings (and where earnings are expected to grow 43% year over year). Financial is another likely sector winner, as it kicked in 18% of 4Q S&P 500 profits, growing at a 19% clip. The Industrial group should deliver a solid performance, with earnings expected to increase at a high-single-digit pace. We note that the Utilities sector punches above its weight, accounting for 2.5% of total market capitalization but generating 3%-4% of S&P 500 profits. Energy is typically a wild card for earnings. Currently, profits from the oil patch are expected to account for about 4% of overall earnings, while declining at a 7% rate. That could change, depending on developments in Iran.