Based in Pittsburgh, Pennsylvania, PPG Industries, Inc. (PPG) specializes in manufacturing and distributing paints, coatings, and specialty materials. With a market cap of $28.89 billion, the company serves a broad range of industries, including automotive, aerospace, construction, and industrial markets.
Companies worth more than $10 billion are typically classified as “large-cap” stocks and PPG Industries fits well into this category. With a focus on continuous improvement and industry-leading solutions, PPG is well-positioned to adapt to evolving market demands while maintaining its leadership in the global coatings industry.
Shares of PPG are trading 15.7% below their 52-week high of $151.16, which they hit on Dec. 14, 2023. The stock has declined marginally over the past three months, lagging the iShares U.S. Basic Materials ETF’s (IYM) 2.7% gain over the same time frame.
In the long term, PPG stock is down 14.8% on a YTD basis, underperforming IYM’s 4.8% gains. Moreover, shares of PPG have declined 4.7% over the past 52 weeks, lagging IYM’s 10.4% returns over the same time frame.
To confirm its bearish trend, PPG has been trading below its 200-day moving average since early April. However, it has been trading above the 50-day moving average since early September.
Shares of PPG plunged 1.5% on Jul. 18, the day its Q2 results were reported. Adjusted EPS of $2.50 per share beat the Wall Street expectations of $2.48. However, revenue of $4.79 billion missed the consensus estimate of $4.91 billion. PPG Industries expects its EPS for the current year to range between $8.15 and $8.30.
Furthermore, PPG has underperformed its rival Sherwin-Williams Company’s (SHW) 21.2% gain on a YTD basis.
Even though PPG has underperformed the broader market, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 22 analysts in coverage, and the mean price target of $152.16 suggests a 19.4% premium to its current levels.
On the date of publication, Rashmi Kumari 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.
