Praxair: Growth Through Gas


Momentum stocks are plentiful in 2017. There are numerous stocks that have been on a complete tear this year. While momentum plays are nice and exciting, diversifying into asset classes that will provide less risk and more stability is essential. One name from our portfolio that might be a little less well known is Praxair Inc. (NYSE:PX). Praxair recently confirmed a merger dealwith Linde Group (OTCPK:LNAGF) (OTCPK:LNEGY), creating the world’s largest supplier of industrial gases. Investors looking for a growth stock with a strong moat should consider Praxair.


Praxair, founded in 1907, has grown to become the largest industrial gas supplier in North and South America, and among the largest in the world. Praxair’s primary products in its industrial gas business are atmospheric gases (oxygen, nitrogen, argon, rare gases) and process gases (carbon dioxide, helium, hydrogen, electronic gases, specialty gases, acetylene). In addition, the company builds equipment that produces industrial gases.

In the industrial gas sector, there were four major players, Praxair, Linde, L’Air Liquide (OTCPK:AIQUF) (OTCPK:AIQUY) and Air Products and Chemicals (NYSE:APD). After the merger between Praxair and Linde, Praxair now dominates the market with $29 billion in sales globally.

Data from company website

Praxair’s economic moat comes from its product distribution models and its limited exposure to low margin areas.


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