PPG Industries (PPG) Outperforms Broader Market: What You Need to Know
In the latest trading session, PPG Industries (PPG) closed at $141.60, marking a +0.8% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.52%. Meanwhile, the Dow experienced a rise of 0.12%, and the technology-dominated Nasdaq saw an increase of 0.9%.
The paint and coatings maker's stock has dropped by 0.4% in the past month, exceeding the Basic Materials sector's loss of 0.45% and lagging the S&P 500's gain of 3.85%.
The upcoming earnings release of PPG Industries will be of great interest to investors. The company is forecasted to report an EPS of $1.89, showcasing a 3.85% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $4.43 billion, indicating a 1.16% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $8.47 per share and revenue of $18.59 billion. These totals would mark changes of +10.43% and +1.91%, respectively, from last year.
Any recent changes to analyst estimates for PPG Industries should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 has moved 0.1% lower within the past month. PPG Industries currently has a Zacks Rank of #3 (Hold).
Digging into valuation, PPG Industries currently has a Forward P/E ratio of 16.58. Its industry sports an average Forward P/E of 18.04, so one might conclude that PPG Industries is trading at a discount comparatively.
One should further note that PPG currently holds a PEG ratio of 1.38. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Chemical - Specialty industry stood at 2.21 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 143, placing it within the bottom 44% of over 250 industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow PPG in the coming trading sessions, be sure to utilize Zacks.com.
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
