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.
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. More news from Barchart
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