Why PPG Industries (PPG) Outpaced the Stock Market Today
The latest trading session saw PPG Industries (PPG) ending at $141.99, denoting a +1.75% adjustment from its last day's close. The stock's change was more than the S&P 500's daily gain of 0.38%. Elsewhere, the Dow saw an upswing of 1.47%, while the tech-heavy Nasdaq depreciated by 0.23%.
Prior to today's trading, shares of the paint and coatings maker had gained 13.48% over the past month. This has outpaced the Basic Materials sector's gain of 7.57% and the S&P 500's gain of 10.72% in that time.
Investors will be eagerly watching for the performance of PPG Industries in its upcoming earnings disclosure. The company is expected to report EPS of $1.49, up 22.13% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $4.27 billion, showing a 1.92% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.64 per share and a revenue of $18.17 billion, signifying shifts of +26.28% and +2.94%, respectively, from the last 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. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.06% downward. PPG Industries is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note PPG Industries's current valuation metrics, including its Forward P/E ratio of 18.26. This indicates a premium in contrast to its industry's Forward P/E of 16.99.
We can additionally observe that PPG currently boasts a PEG ratio of 1.18. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. PPG's industry had an average PEG ratio of 2.77 as of yesterday's close.
The Chemical - Specialty industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 214, finds itself in the bottom 16% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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PPG Industries, Inc. (PPG) : Free Stock Analysis Report
