PPG Industries (PPG) Dips More Than Broader Market: What You Should Know
PPG Industries (PPG) closed the latest trading day at $149.55, indicating a -0.55% change from the previous session's end. The stock's change was less than the S&P 500's daily loss of 0.28%. At the same time, the Dow lost 0.06%, and the tech-heavy Nasdaq lost 0.56%.
Heading into today, shares of the paint and coatings maker had gained 5.91% over the past month, lagging the Basic Materials sector's gain of 7.51% and outpacing the S&P 500's gain of 5.24% in that time.
Analysts and investors alike will be keeping a close eye on the performance of PPG Industries in its upcoming earnings disclosure. The company's earnings report is set to go public on January 18, 2024. The company's earnings per share (EPS) are projected to be $1.49, reflecting a 22.13% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $4.27 billion, up 1.92% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $7.64 per share and a revenue of $18.16 billion, demonstrating changes of +26.28% and +2.89%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for PPG Industries. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. PPG Industries is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, PPG Industries is currently trading at a Forward P/E ratio of 19.68. Its industry sports an average Forward P/E of 18.38, so one might conclude that PPG Industries is trading at a premium comparatively.
We can additionally observe that PPG currently boasts a PEG ratio of 1.27. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Chemical - Specialty industry stood at 2.77 at the close of the market yesterday.
The Chemical - Specialty industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 144, placing it within the bottom 43% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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PPG Industries, Inc. (PPG) : Free Stock Analysis Report
