|Bid||0.00 x 800|
|Ask||0.00 x 800|
|Day's Range||104.50 - 104.58|
|52 Week Range||88.53 - 113.81|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.02|
|Expense Ratio (net)||0.40%|
Update on Chemical Companies Last Week(Continued from Prior Part)LyondellBasell bagged a new order in IndiaIn a press release on February 13, LyondellBasell (LYB) announced that it bagged a new client order in India. LyondellBasell will be providing
PPG Industries' Q4 Earnings Beat the Street—Stock Rises(Continued from Prior Part)Industrial Coatings in the fourth quarter PPG Industries’ (PPG) Industrial Coatings segment is the company’s second reporting segment. It represented 41.3% of
Weekly Update: Specialty Chemicals in the Week Ending January 18(Continued from Prior Part)IFF’s Frutarom completes acquisition of 60% in Mighty On January 18, International Flavors and Fragrances (IFF) announced that Frutarom acquired 60% of
Weekly Update: Specialty Chemicals in the Week Ending January 18(Continued from Prior Part)PPG Industries’ first-quarter dividend On January 17, PPG Industries (PPG) announced the dividend for the first quarter of 2019. The board declared a
Weekly Update: Specialty Chemicals in the Week Ending January 18LyondellBasell’s leadership roleOn January 16, LyondellBasell (LYB) announced that its CEO Bob Patel, Proctor & Gamble’s (PG) CEO David Taylor, and Veolia’s CEO Antoine
PPG Industries: What to Expect from Its Q4 Earnings(Continued from Prior Part)Analysts’ consensus on PPG IndustriesSince PPG Industries’ (PPG) third-quarter earnings, the number of analysts tracking the company has increased from 22 analysts to
Specialty Chemicals: Updates for the Week Ending January 11 (Continued from Prior Part) ## PPG Industries’ new launch On January 9, PPG Industries (PPG) announced the introduction of SPECTRACRON 385 POLY-IOTHANE—a solid primer. The new primer has outstanding durability in severe and corrosive environments. The primer has good chemical resistance, excellent flexibility, and direct and indirect impact resistance. The primer has maximum volatile organic compound emissions of 3.5 pounds per gallon. The new primer is environmentally friendly. The new primer is targeted at industries like industrial equipment, building materials, telecommunications, and other heavy-duty equipment applications. PPG Industries’ new launches are expected to drive its organic growth. We’ll have to wait and see how the new launches will contribute to PPG Industries’ revenue growth. ## Stock price updates PPG Industries had a positive week with gains of 2.0% and closed at $101.86 for the week ending January 11. Despite the gains in the stock price, PPG Industries traded 3.6% below the 100-day moving average price of $105.70. So far in 2019, PPG Industries has declined 0.4%. RPM International (RPM) has declined 7.0%, while Sherwin-Wiliams (SHW) and Axalta (AXTA) have gained 0.6% and 6.6%, respectively. PPG Industries’ 14-day relative strength index is at 51, which indicates that the stock isn’t overbought or oversold. Investors could hold PPG Industries indirectly by investing in the Guggenheim S&P 500 Equal Weight Materials ETF (RTM). RTM gained 2.4% during the week. RTM invests 4.0% of its portfolio in PPG Industries. Continue to Next Part Browse this series on Market Realist: * Part 1 - Hanwha Total Petrochemical: W.R. Grace’s New Order * Part 2 - IFF Collaborates with Aryballe on Digital Nose * Part 4 - Axalta: ‘Sahara’ Is the 2019 Automotive Color of the Year
Specialty Chemicals: Updates for the Week Ending January 11 (Continued from Prior Part) ## New collaboration On January 7, International Flavors and Fragrances (IFF) announced that it has entered into a collaboration with Aryballe—an olfaction technology company located in Grenoble, France. However, International Flavors and Fragrances didn’t disclose the financial aspects of the collaboration. The collaboration between International Flavors and Fragrances and Aryballe aims to develop odor-sensing and quality control applications that can be applied in food, cosmetics, fragrance, and other industries. The technology could provide a new experience for International Flavors and Fragrances’ customers. Nicolas Mirzayantz, the divisional CEO of International Flavors and Fragrances’ Scent segment, said, “Our innovation team is thrilled to work with Aryballe on evolving this innovative device to one that is indispensable to the F&F space. We believe that we are only scratching the surface of its potential for our industry – its applications seem virtually limitless!” ## Stock performance International Flavors and Fragrances stock fell 0.9% and closed at $134.95 for the week ending January 11. The decline in the stock price resulted in the trend reversal in International Flavors and Fragrances’ 100-day moving average price. Currently, International Flavors and Fragrances is trading 1.3% below the 100-day moving average price of $136.74. The company’s 100-day moving average price has fallen from a high of $150. However, the price has recovered to the current levels from the low of $128.90. So far in 2019, International Flavors and Fragrances stock has gained ~2.1%. Sensient Technologies (SXT) and Clorox (CLX) have gained 7.9% and 0.2%, respectively, while Estée Lauder (EL) has declined 2.0%. Analysts expect International Flavors and Fragrances’ target price to be $148.4, which implies a return potential of 10% over the closing price as of January 11. Investors looking for indirect exposure to International Flavors and Fragrances could consider the Invesco S&P 500 Equal Weight Materials ETF (RTM), which invested 3.9% of its portfolio in the company as of January 11. Continue to Next Part Browse this series on Market Realist: * Part 1 - Hanwha Total Petrochemical: W.R. Grace’s New Order * Part 3 - PPG Industries Launched a New Polyurethane Primer * Part 4 - Axalta: ‘Sahara’ Is the 2019 Automotive Color of the Year
Some sectors are not geared toward all investors. The materials sector, the smallest sector weight in the S&P 500 Index at just 2.73%, is one of those groups. But the materials' size in the S&P 500 and other broad benchmarks is not the issue. Rather, materials is a cyclical sector, meaning its volatility can be more comparable to other cyclical groups, such as energy and industrials. Materials stocks often show correlations to commodities prices, making the sector vulnerable to swings in the dollar and the global economic cycle. Said simply, the materials sector is not a defensive sector. Additionally, the materials sector is unlikely to weather broader market declines. If anything, the sector is likely to perform worse than the broader market during bearish environments. As broader benchmarks slipped last year, the Materials Select Sector Index tumbled nearly 15% for the year, or more than triple the 2018 loss incurred by the S&P 500. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Stocks at Risk of the Global Smartphone Slowdown For the adventurous and risk-tolerant, exchange-traded funds (ETFs) might be the way to go about picking stocks in the materials sector. Here are some of the best materials ETFs to invest in if the sector bounces back. ### Materials Select Sector SPDR (XLB) Expense ratio: 0.13% per year, or $13 on a $10,000 investment. The Materials Select Sector SPDR (NYSEARCA:XLB) tracks the aforementioned Materials Select Sector Index and is the largest materials ETF in the U.S. XLB, which is more than 20 years old, "seeks to provide precise exposure to companies in the chemical, construction material, containers and packaging, metals and mining, and paper and forest products industries," according to State Street. As a cap-weighted ETF tracking a relatively small sector, there is some concentration risk with this materials ETF. Just two stocks - DowDuPont Inc. (NYSE:DWDP) and Linde Plc (NYSE:LIN) - combine for over 36% of XLB's roster. Overall, this materials ETF holds 25 stocks. Source: Shutterstock ### Fidelity MSCI Materials ETF (FMAT) Expense ratio: 0.084% per year Keeping with Fidelity's rapidly growing tradition of being a low-cost leader, the Fidelity MSCI Materials ETF (NYSEARCA:FMAT) is the currently the cheapest materials ETF on the market. Like XLB, FMAT is a cap-weighted materials ETF. That does not mean the returns generated by these two rivals will mirror each other. FMAT holds nearly 120 stocks, giving it a significantly larger lineup than XLB, meaning these materials ETFs are likely to offer varying returns from year-to-year. That was the case in 2018 when FMAT slid 17.40%, a performance that was 250 basis points worse than XLB's. * 7 Stocks to Buy That Are Run By Billionaires Like the rival XLB, FMAT is top heavy, allocating over 37% of its combined weight to DowDuPont and Linde. Source: Shutterstock ### Invesco S&P 500 Equal Weight Materials ETF (RTM) Expense ratio: 0.40% per year For investors looking to mitigate the single stock risk often associated with the materials sector the Invesco S&P 500 Equal Weight Materials ETF (NYSEARCA:RTM) is the materials ETF to consider. Regardless of sector, equal-weight ETFs typically feature smaller average market values among the underlying holdings than cap-weighted funds. The average market capitalization of RTM's 25 holdings is $25.69 billion compared to $48.33 billion for XLB's holdings. Despite the tilt toward smaller companies, that trait does not ensure RTM will perform worse than cap-weighted rivals when the materials sector slides. Last year, RTM actually performed slightly less poorly than the cap-weighted XLB and FMAT. RTM also has a value feel as over 51% of this materials ETF's holdings are classified as value stocks. None of RTM's holdings have weights exceeding 4.30%. ### SPDR S&P Metals & Mining ETF (XME) Expense ratio: 0.35% per year The SPDR S&P Metals & Mining ETF (NYSEARCA:XME) is a more tactical materials ETF, offering investors the potential for larger rewards - and greater risk - than rival materials ETFs. Home to nearly $512 million in assets under management, XME "seeks to provide exposure to the metals & mining segment of the S&P TMI, which comprises the following sub-industries: Aluminum, Coal & Consumable Fuels, Copper, Diversified Metals & Mining, Gold, Precious Metals & Minerals, Silver, and Steel," according to State Street. XME is also an equal-weight ETF and its 29 holdings definitely toward the smaller end of the market capitalization spectrum as evidenced by an average market value of $4.64 billion. This materials ETF is heavily allocated to steel, coal and aluminum producers. * 5 Big Turnaround Stocks to Buy Now Those are volatile corners of the materials sector, meaning XME cannot endure simultaneous weakness in those industries. XME's vulnerabilities to weakness in those segments was on display last year when the materials ETFs shed almost 27%. ### First Trust Materials AlphaDEX Fund (FXZ) Expense ratio: 0.64% per year Beyond the equal-weight materials ETFs highlighted here, there are other smart beta approaches to this sector. The First Trust Materials AlphaDEX Fund (NYSEARCA:FXZ) is one of those funds. FXZ follows the StrataQuant Materials Index. That index targets materials names from the Russell 1000 Index based "on growth factors including three, six and 12-month price appreciation, sales to price and one year sales growth, and, separately, on value factors including book value to price, cash flow to price and return on assets," according to First Trust. FXZ's weighting scheme is undoubtedly unique relative to other materials ETFs and its annual fee is undoubtedly high compared to the category average. Neither trait means FXZ is a "good" materials ETF as highlighted by the fund's 2018 decline of 22.60%. FXZ holds 51 stocks with a median market value of $6.89 billion and this materials ETF trades at steep discounts relative to the broader market as highlighted by a price-to-earnings ratio of just over nine. Todd Shriber does not own any of the aforementioned securities. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks You Can Set and Forget (Even In This Market) * 10 Virtual Assistants for the Future of Smart Homes * 7 5G Stocks to Buy as the Race for Spectrum Tightens Compare Brokers The post 5 Maybe-Marvelous Materials ETFs to Invest In appeared first on InvestorPlace.
PPG Industries Acquires Hemmelrath ## PPG Industries’ new acquisition PPG Industries (PPG) continued its acquisition spree to complement its commitment of cash deployment towards acquisitions and share repurchases. On January 7, PPG Industries announced that it signed a definitive agreement to acquire Hemmelrath—an automotive coating manufacturer. PPG Industries expects the deal to be completed in the first half of 2019. However, PPG Industries didn’t disclose the financial aspects of the acquisition. Hemmelrath is PPG Industries’ second acquisition in the past month. On December 14, PPG Industries entered into a definitive agreement to acquire Whitford Worldwide. The acquisitions suggest that PPG Industries is looking to grow its top and bottom line through an acquisition strategy. The acquisition will likely complement PPG Industries’ automotive segment and increase the company’s foothold. Michael McGarry, PPG Industries’ chairman and CEO, said, “We are excited to add Hemmelrath to our robust and diversified automotive coatings offering. This acquisition is another step forward in our strategic growth plan that will provide further value to our customers and shareholders.” ## Stock price PPG Industries closed on a positive note with a marginal gain of 0.3%. PPG Industries closed at $100.24 on January 7. So far, PPG Industries has fallen 2% in 2019. Investors could hold PPG Industries indirectly by investing in the Invesco S&P 500 Equal Weight Materials ETF (RTM), which has invested 4.1% of its portfolio in PPG Industries. The fund also provides exposure to Celanese (CE), Air Products and Chemicals (APD), and Eastman Chemical (EMN) with weights of 4.3%, 4.2%, and 4.2%, respectively.
Analyzing Chemical Companies in the Week Ending January 4 (Continued from Prior Part) ## A. Schulman’s dividend for the convertible special stock On January 4, A. Schulman, a subsidiary of LyondellBasell (LYB), announced a quarterly dividend for its convertible special stock. A. Schulman declared a dividend of $15.00 per share. A. Schulman has set January 15 as the record date. The dividend for the convertible special stock is expected to be paid on February 1. Investors who hold the convertible special stock on the record date will be eligible for the dividend. In 2017, A. Schulman paid $7.5 million towards the convertible special stock. At the end of August 2017, there were 125,000 convertible special stocks, which means that A. Schulman would be paying ~1.85 million in dividends. ## LyondellBasell’s stock performance LyondellBasell remained positive in the first week of 2019. The stock gained 5.25% for the week and closed at $86.70. Despite the gains, the stock traded 10.9% below the 100-day moving average price of $97.32. LyondellBasell’s 100-day moving average has fallen from a high of $111.04, which indicates the downward trend in the stock. In 2018, LyondellBasell fell ~24.6%. Celanese (CE), Westlake Chemical (WLK), and Eastman Chemical (EMN) have fallen 16.0%, 37.9%, and 21.1%, respectively. LyondellBasell’s 14-day relative strength index of 54 indicates that the stock isn’t overbought or oversold. Investors could hold LyondellBasell indirectly by investing in the Invesco S&P 500 Equal Weight Materials ETF (RTM), which gained 3.1% the previous week. RTM has invested 4.3% of its portfolio in LyondellBasell as of January 4. Continue to Next Part Browse this series on Market Realist: * Part 1 - DowDuPont’s Corteva Sold Its Herbicide Product Line * Part 2 - Celanese Completed the Next Polymers Acquisition * Part 3 - Westlake Chemical Completed the Nakan Acquisition
The number of analysts tracking Air Products and Chemicals (APD) has more or less remained constant. Currently, 21 analysts are actively tracking Air Products and Chemicals. Among the analysts, 86% gave a “buy” recommendation, 14% gave a “hold” recommendation, and none of the analysts gave a “sell” recommendation for Air Products and Chemicals.
On December 17, PPG Industries (PPG) announced that Kumar Nandan, the director of US taxes, will become the vice president of the tax administration. The move will be effective on March 1, 2019. Nandan will be replacing John Kolling who announced his retirement.
On December 12, International Flavors and Fragrances’ (IFF) board of directors announced the key dates and rate for the fourth-quarter dividend. The board declared a dividend of $0.73 per share for the fourth quarter. There wasn’t a change in the company’s dividend rate compared to the previous quarter. However, the dividend reflects 5.8% growth compared to the same quarter the previous year.
In a press release on December 13, PPG Industries (PPG) revealed that it’s set to increase its investment in automated dispense cell manufacturing of paint and related coatings. The move is a boost to the automotive parts and accessories decorative (APAD) space. This technology will help PPG Industries increase the production and approve paint batches to vehicle original equipment manufacturers and component suppliers faster.
As of December 12, Eastman Chemical’s dividend yield stood at 3.17%—the highest level sequentially since the first quarter of 2014. Celanese (CE), Westlake Chemical (WLK), and DowDuPont (DWDP) have dividend yields of 2.37%, 1.46%, and 2.7%, respectively. Eastman Chemical’s current dividend yield exceeds its peers’ dividend yields.
On December 4, the subsidiary of International Flavors and Fragrances (IFF), IFF-Lucas Meyer Cosmetics announced that it acquired three personal care ingredients and intellectual property rights from Kemin Industries—an ingredient manufacturer of food and health-related products. Acquiring Lysofix, XFoliPEARL, and MicrCurb ingredients should strengthen the IFF-LMC product portfolio. However, International Flavors and Fragrances didn’t disclose the deal’s financial aspects.
On December 3, PPG Industries (PPG) announced that it completed the acquisition of SEM Products. PPG Industries entered into a definitive agreement to acquire SEM Products on October 18. SEM Products is a US-based manufacturer that specializes in automotive refinish products. However, PPG Industries hasn’t disclosed the deal’s financial aspects.
Analysts’ interest in Albemarle (ALB) has increased compared to the previous three months. Currently, 23 analysts are actively tracking the stock. Among the analysts, 74% recommend a “buy,” 22% recommend a “hold,” and 4% recommend a “sell.” Analysts’ views and recommendations are vital for investors. The recommendations help investors track the stock price movements.
In a press release today, LyondellBasell (LYB) announced its fourth-quarter dividend. LyondellBasell’s board declared a dividend of $1.00 per share, which is flat compared to the dividend rate last quarter. Assuming no buybacks, LyondellBasell would pay $387.17 million in dividends.
At the end of the third quarter, Eastman Chemical’s (EMN) total debt stood at $6.62 billion. The company’s debt increased after declining for three years. Since 2012, Eastman Chemical’s debt has grown at a compound annual growth rate of ~7.0%. The debt includes long-term borrowings and the borrowings due to be paid within one year.
On November 20, PPG Industries (PPG) announced that it received Uni-Select’s 2018 Diamond Award. The award is given to suppliers who offer high-quality and sustainable products and provide efficient service. Uni-Select is one of PPG’s prestigious clients. PPG has been supplying automotive refinishing products to Uni-Select. The award ceremony was held in Las Vegas, Nevada.
On November 12, PPG Industries (PPG) announced that it has entered into an agreement with Powercast to jointly develop ultra-thin wirelessly powered printed electronics products. The companies plan to introduce LED-based illumination solutions that are applied in consumer product packaging, smart identification cards, and others.
Air Products and Chemicals’ (APD) Industrial Gases–Americas segment was the company’s largest revenue contributor in the fourth quarter. The Industrial Gases–Americas segment’s revenues continued to increase on a sequential basis for the third consecutive quarter. In the fourth quarter, Air Products and Chemicals’ Industrial Gases–Americas segment reported an operating income of $251.3 million, which implies a decline of ~5.1% YoY.