Is Linde (LIN) Set to Benefit From a Global Industrial Recovery?

Is Linde (LIN) Set to Benefit From a Global Industrial Recovery?

Mon, August 24, 2026 at 5:00 PM GMT+3 3 min read

• LIN +0.34%

Sustainable Growth Advisers (SGA), an investment management company, released its second-quarter 2026 investor letter for its "Global Growth Strategy." The letter can be downloaded here. The SGA Global Growth Portfolio returned 7.4% gross and 7.2% net, compared with 14.9% for the MSCI ACWI and 19.8% for the MSCI ACWI Growth Index. Momentum leadership and enthusiasm around AI infrastructure drove markets, with semiconductor, memory, and hardware stocks accounting for much of the gain. Although the portfolio owned AI beneficiaries, broader holdings lagged despite fundamentals, as median revenue and EPS growth reached 12% and 14% and more than 60% of the holdings beat expectations. SGA believes valuation compression reflects sentiment rather than weaker business quality, leaving the portfolio near its widest discount to the market since inception. The firm continues to favor durable compounders and expects 16% revenue growth and 20% earnings growth over three years. Also, please check the Fund's top five holdings to see its best picks for 2026.

In its second-quarter 2026 investor letter, SGA Global Growth Strategy highlighted Linde plc (NASDAQ:LIN) as a new holding. Linde plc (NASDAQ:LIN) operates as the world's leading industrial gas company. On August 21, 2026, Linde plc (NASDAQ:LIN) closed at $487.57 per share. The one-month return of Linde plc (NASDAQ:LIN) was -3.84%, and its shares gained 2.03% over the past 52 weeks. Linde plc (NASDAQ:LIN) has a market capitalization of $224.76 billion.

SGA Global Growth Strategy stated the following regarding Linde plc (NASDAQ:LIN) in its Q2 2026 investor letter:

"Linde plc (NASDAQ:LIN), the world's largest industrial gas company, was added to the portfolio in April. We had previously exited the position in 2024 due to valuation considerations and forced attrition; since then, the stock price has consolidated while fundamentals continued to progress. Linde remains an attractive long-term investment, supported by a highly durable business model and meaningful structural advantages. A large share of revenue is generated from long-term, recurring customer contracts in essential end markets, providing strong pricing power and cash flow visibility even in a slower growth environment. The company's strengths are rooted in its production efficiency and broad exposure across diverse end markets, including healthcare, manufacturing, electronics, chemicals, and energy.

Looking ahead, Linde is well-positioned to benefit from structural improvements and a potential acceleration in global growth across several of its core markets over the medium term. The U.S., which accounts for roughly 45% of revenue, is likely to see improved growth driven by an industrial recovery, increased semiconductor manufacturing, and higher refinery utilization. Europe (approximately 25% of revenue) has been a headwind in recent years due to negative volume growth, but is expected to stabilize over the medium term, with the potential for modest recovery from a low base. Asia-Pacific, representing more than 20% of revenue, is expected to reaccelerate as well, with increased semiconductor production acting as a key demand driver alongside other growth levers..." (Click here to read the full text)

Linde plc (NASDAQ:LIN) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 104 hedge fund portfolios held Linde plc (NASDAQ:LIN) at the end of the first quarter which was 89 in the previous quarter. While we acknowledge the potential of Linde plc (NASDAQ:LIN) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Linde plc (NASDAQ:LIN) and shared a list of reliable dividend stocks to buy for long-term investors. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.