PPG Industries, Inc. (PPG), headquartered in Pittsburgh, Pennsylvania, manufactures and distributes paints, coatings, and specialty materials. Valued at $22.7 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.
Despite its notable strength, PPG slipped 22.3% from its 52-week high of $130.05, achieved on Dec. 9, 2024. Over the past three months, PPG stock has declined 8.1%, underperforming the Materials Select Sector SPDR Fund’s (XLB) 4.1% losses during the same time frame.
In the longer term, shares of PPG fell 9.2% on a six-month basis and dipped 19.5% over the past 52 weeks, underperforming XLB’s six-month marginal gains and 4.4% dip over the last year.
To confirm the bearish trend, PPG has been trading below its 200-day moving average over the past year, with slight fluctuations. However, the stock has been trading above its 50-day moving average recently.
On Oct. 28, PPG reported its Q3 results, and its shares closed down by 5.9% in the following trading session. Its adjusted EPS of $2.13 surpassed Wall Street expectations of $2.09. The company’s revenue was $4.1 billion, exceeding Wall Street's $4 billion forecast. PPG expects full-year adjusted EPS in the range of $7.60 to $7.70.
In the competitive arena of specialty chemicals, The Sherwin-Williams Company (SHW) has taken the lead over PPG, showing resilience with a 6.9% downtick on a six-month basis and 13.5% 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 24 analysts covering it, and the mean price target of $120 suggests a potential upside of 18.8% 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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