PPG Industries (PPG) Registers a Bigger Fall Than the Market: Important Facts to Note
In the latest trading session, PPG Industries (PPG) closed at $141.15, marking a -0.99% move from the previous day. This change lagged the S&P 500's 0.31% loss on the day. Meanwhile, the Dow lost 0.41%, and the Nasdaq, a tech-heavy index, lost 0.27%.
Heading into today, shares of the paint and coatings maker had lost 1.25% over the past month, lagging the Basic Materials sector's gain of 5.14% and the S&P 500's gain of 3.05% in that time.
The upcoming earnings release of PPG Industries will be of great interest to investors. The company's earnings per share (EPS) are projected to be $1.89, reflecting a 3.85% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $4.43 billion, showing a 1.16% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.47 per share and revenue of $18.59 billion, indicating changes of +10.43% and +1.91%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for PPG Industries. These revisions help to show the ever-changing nature 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 capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, PPG Industries possesses a Zacks Rank of #2 (Buy).
Looking at valuation, PPG Industries is presently trading at a Forward P/E ratio of 16.82. This valuation marks a discount compared to its industry's average Forward P/E of 18.15.
We can additionally observe that PPG currently boasts a PEG ratio of 1.4. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Chemical - Specialty industry had an average PEG ratio of 2.11.
The Chemical - Specialty industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 88, putting it in the top 35% of all 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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PPG Industries, Inc. (PPG) : Free Stock Analysis Report
