PPG Industries (PPG) is a Top-Ranked Value Stock: Should You Buy?
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.
PPG Industries (PPG)
PPG Industries Inc., based in Pennsylvania, is a global supplier of paints, coatings, chemicals, specialty materials, glass, and fiber glass. The company has manufacturing facilities and equity affiliates in about 70 countries.
PPG sits at a Zacks Rank #3 (Hold), holds a Value Style Score of B, and has a VGM Score of A. Compared to the Chemical - Specialty industry's P/E of 17X, shares of PPG Industries are trading at a forward P/E of 18.3X. PPG also has a PEG Ratio of 1.2, a Price/Cash Flow ratio of 16.5X, and a Price/Sales ratio of 1.8X.
A company's earnings performance is important for value investors as well. For fiscal 2023, seven analysts revised their earnings estimate higher in the last 60 days for PPG, while the Zacks Consensus Estimate has increased $0.13 to $7.64 per share. PPG also holds an average earnings surprise of 8.9%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding PPG to their portfolios.
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
