PPG Industries, Inc. (PPG), headquartered in Pittsburgh, Pennsylvania, manufactures and distributes paints, coatings, and specialty materials. Valued at $25.2 billion by market cap, the company makes protective and decorative coatings, flat glass, fabricated glass products, continuous-strand fiber glass products, and industrial and specialty chemicals.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and PPG perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the specialty chemicals industry. PPG’s global footprint spans 70+ countries, serving industrial, automotive, aerospace, and construction markets. This diversification cushions regional downturns and helped the company stay competitive despite foreign currency headwinds.
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Despite its notable strength, PPG slipped 15.3% from its 52-week high of $133.43, achieved on Feb. 12. Over the past three months, PPG stock has gained 6.7%, underperforming the Nasdaq Composite’s ($NASX) 10.9% gains during the same time frame.
www.barchart.comShares of PPG have rose 10.3% on a YTD basis, outperforming NASX’s YTD gains of 8.3%. However, the stock dipped 1.8% over the past 52 weeks, underperforming NASX’s 27.7% returns over the same time frame.
To confirm the recent bullish trend, PPG has been trading above its 50-day and 200-day moving averages since late May.
www.barchart.comOn Apr. 28, PPG shares closed down more than 2% after reporting its Q1 results. Its adjusted EPS of $1.83 met Wall Street expectations. The company’s revenue was $3.9 billion, beating Wall Street forecasts of $3.8 billion. PPG expects full-year adjusted EPS to be $7.70 to $8.10.
In the competitive arena of specialty chemicals, The Sherwin-Williams Company (SHW) has lagged behind PPG, with a 6.2% downtick on a YTD basis and 15.8% losses over the past 52 weeks.
Wall Street analysts are reasonably bullish on PPG’s prospects. The stock has a consensus “Moderate Buy” rating from the 23 analysts covering it, and the mean price target of $122.89 suggests a potential upside of 8.8% from current price levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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