All stocks experience periods in which they don’t meet the hype of Wall Street expectations and they get punished for it. But one or two quarters of not meeting consensus doesn’t mean that the underlying business isn’t a good one. (See “Are Good Businesses Always Good Investments?”)
That’s the case with Chart Industries; a company that’s selling a lot of product to China.
The position looks to be in its own downtrend, and the grinding that’s going on in the broader market represents a jitteriness that could very well lead to a correction.
With this in mind, the company’s valuation isn’t unreasonable. One Wall Street firm recently increased their earnings estimates on the company for the second quarter.
I’d definitely put this enterprise on a watch list. Having broken its simple 200- and 50-day moving averages, more downside seems likely over the near-term.
Energy production, storage, and transportation boasts excellent fundamentals for the rest of this decade. While it’s still early stages in the liquefied natural gas (LNG) build-out, a company like Chart Industries should be a major beneficiary of the infrastructure being created to ship LNG overseas.
This article is brought to you courtesy of Mitchell Clark from Profit Confidential.