U.S. Markets open in 9 hrs 25 mins

PPG Industries Launches Envirocron for Corrosion Protection

Zacks Equity Research

PPG Industries, Inc. PPG introduced Envirocron Extreme Protection Edge coatings, which uses advanced powder coatings technology for edge corrosion protection in one coat.

The technology is specially formulated to conceal sharp edges created during metal fabrication. Notably, it provides superior coverage compared with standard one-coat and two-coat powder systems. The product offers a competitive advantage in protecting vulnerable areas of metal that are exposed to corrosive conditions.

Moreover, the fully reclaimable direct-to-metal coatings delivers substantial savings in terms of labor, material, utilities and time. It does not require primer and applicators need not modify the existing coatings lines or add equipment for using the new solution. In the long term, the coatings have the potential to minimize warranty claims and boost resale value by extending the product lifecycle.

PPG Industries’ adjusted earnings of $1.15 per share in fourth-quarter 2018 beat the Zacks Consensus Estimate of $1.09.

The company expects cost inflation, unfavorable foreign currency translation and lower sales volume to impact performance in the first half of 2019. Based on these factors, PPG Industries projects first-quarter 2019 earnings per share (EPS) in the range of $1.18-$1.23.

The company envisions sales growth of 3-5% at constant currency for 2019. It also expects adjusted EPS growth of 7-10%. Moreover, the company expects to generate at least $70 million in cost savings in 2019.

PPG Industries, Inc. Price and Consensus


PPG Industries, Inc. Price and Consensus | PPG Industries, Inc. Quote


Zacks Rank & Key Picks

PPG Industries currently carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the basic materials space include Kirkland Lake Gold Ltd. KL, Ingevity Corporation NGVT and Materion Corporation MTRN, all currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Kirkland has an expected earnings growth rate of 8.8% for 2019. The company’s shares have surged 115.7% in the past year.

Ingevity has an expected earnings growth rate of 17.9% for 2019. The company’s shares have improved 51.2% in a year’s time.

Materion has an expected earnings growth rate of 12.6% for 2019. Its shares have gained 17.7% in a year’s time.

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.

This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.

See their latest picks free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
PPG Industries, Inc. (PPG) : Free Stock Analysis Report
Ingevity Corporation (NGVT) : Free Stock Analysis Report
Materion Corporation (MTRN) : Free Stock Analysis Report
Kirkland Lake Gold Ltd. (KL) : Free Stock Analysis Report
To read this article on Zacks.com click here.