Founded in 1883 and headquartered in Pittsburgh, Pennsylvania, PPG Industries, Inc. (PPG) is a global leader in paints, coatings, and specialty materials. With a market capitalization of $25.8 billion, PPG is recognized for its advanced solutions that enhance durability, aesthetics, and protection across multiple industries, including automotive, aerospace, construction, and industrial manufacturing.
Companies with a market value of $10 billion or more are classified as “large-cap stocks,” PPG Industries is a prominent member of this category. By providing high-performance solutions tailored to various industries, the company fosters long-term growth and sustainability in a constantly evolving market. PPG’s dedication to innovation and excellence has cemented its position as a global leader in surface protection and enhancement.
However, PPG’s stock performance has faced headwinds. shares are currently trading 22.3% below their 52-week high of $145.60, reached on April 2024. The stock has declined 5.4% over the three months, compared to the broader Nasdaq Composite’s ($NASX) fall of 8.4% over the same time frame.
Over the past six months, PPG has declined by 12.5%, underperforming NASX’s dip of 1.5%. Likewise, over the past 52 weeks, PPG dipped 20.1%, in contrast to NASX's 9.8% growth during the same time frame.
From a technical standpoint, PPG has remained below its 200-day moving average since mid-April 2024, signaling prolonged weakness. Additionally, after falling below the 50-day moving average in late October 2024, the stock has struggled to regain upward momentum, reinforcing a persistent downtrend trend.
PPG Industries has underperformed the broader market over the past year due to weak demand in the U.S. and Europe, supply chain disruptions, and declining industrial production. Geopolitical tensions, including the Russia-Ukraine conflict, and lower automotive build rates have further pressured sales, particularly in its Industrial Coatings segment.
The company released its fourth-quarter 2024 earnings on Jan. 30, posting an adjusted EPS of $1.61, slightly below analysts' expectations of $1.65. Net sales declined by 5% to $3.7 billion, primarily due to reduced demand for industrial and architectural coatings, influenced by rising U.S. mortgage rates and weakened factory activity.
CEO Tim Knavish acknowledged ongoing headwinds, particularly in European demand and global industrial markets, and anticipates a sluggish start to 2025. However, he expects stabilization in key economic indicators, including light vehicle production and industrial output, later in the year. Following the earnings release, PPG’s stock fell 6%, reflecting investor concerns over the earnings miss and revenue decline.
Furthermore, PPG has underperformed its rival Sherwin-Williams Company’s (SHW) 11.8% fall over the past six months and a marginal decline over the past year.
Despite PPG underperforming the broader sector, analysts maintain a moderately optimistic outlook on the stock's prospects. Of the 23 analysts covering it, the consensus rating is “Moderate Buy.” It has a mean price target of $131.79, which indicates a potential upside of 16.5% from its current level.
On the date of publication, Kritika Sarmah 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.
