PPG Industries, Inc. (PPG), founded in 1883 and headquartered in Pittsburgh, Pennsylvania, is a global leader in paints, coatings, and specialty materials. With a market cap of $27.7 billion, PPG is known for its innovation and expertise in delivering high-performance solutions that protect and enhance surfaces across various industries, including automotive, aerospace, construction, and industrial applications.
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. PPG drives long-term success and sustainability in an ever-evolving marketplace by delivering high-performance solutions that enhance and protect surfaces across diverse industries.
PPG Industries’ shares are currently trading 20.8% below their 52-week high of $150.82, reached on Dec. 28, 2023. The stock has declined 7.5% over the three months, significantly underperforming the broader S&P 500 Index’s ($SPX) 2.7% gains during the same time frame.
Over the long term, PPG has declined by 20.1% on a YTD basis, underperforming SPX’s gain of 23.1%. Likewise, over the past 52 weeks, PPG dipped 23%, in contrast to SPX's 23% growth during the same time frame.
The stock had traded below its 200-day moving average since April and below the 50-day moving average since October, indicating a bearish trend.
PPG stock dropped over the four sessions following its Q3 earnings release on Oct. 16. Adjusted earnings rose 2.9% year over year to $2.13 per share, slightly missing the $2.15 estimate. Revenue fell 1.3% to $4.58 billion, below the forecasted $4.65 billion. PPG expects flat organic sales and adjusted EPS at the lower end of the $8.15 to $8.30 range for 2024 while focusing on growth opportunities through strategic divestitures and cost management to drive higher margins.
Furthermore, PPG has underperformed its rival Sherwin-Williams Company’s (SHW) 9.8% gain on a YTD basis and 11.5% rally over the past year.
Despite PPG underperforming the broader sector, analysts maintain a moderately optimistic outlook on the stock's prospects. Of the 22 analysts covering it, the consensus rating is “Moderate Buy.” It has a mean price target of $148.20, which indicates a potential upside of 24% from its current level.
