|Bid||51.13 x 900|
|Ask||51.73 x 800|
|Day's Range||51.45 - 52.76|
|52 Week Range||47.05 - 64.17|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.12|
|Expense Ratio (net)||0.13%|
PPG Stock Is Up on Its Q4 Earnings BeatPPG Industries announces its fourth-quarter results PPG Industries (PPG) announced its fourth-quarter earnings results today before the market opened. It reported adjusted EPS of $1.15, a fall of ~3.4%
PPG Industries: What to Expect from Its Q4 Earnings(Continued from Prior Part)Fourth-quarter revenue expectationsWall Street analysts expect PPG Industries (PPG) to post revenues of $3.65 billion in its fourth-quarter earnings release. The estimates
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.
Analyzing Chemical Companies in the Week Ending January 4 ## Corteva sold its herbicide product line On January 3, American Vanguard (AVD) announced that it acquired the Quizalofop product line of herbicides from Corteva Agriscience—DowDuPont’s (DWDP) agriculture division. However, the parties didn’t disclose any of the financial aspects of the deal. The product line includes soybeans, canola, and pulses sold in the US and Canada. As part of the transaction, American Vanguard will get technical registrations, commercial sales information, and the transfer of existing product supply arrangements. Eric Wintemute, American Vanguard’s chairman and CEO, said, “Our acquisition of the QPE product line from Corteva Agriscience provides our crop protection business with a portfolio of valuable herbicide brands that hold significant leadership positions in the North American market. These products are complementary to existing glyphosate, glufosinate and 2,4D use, and are highly regarded for weed and grass control by providing a broad window of application and excellent crop safety.” ## DowDuPont’s stock price DowDuPont’s stock prices gained 3.2% and closed at $54.73 for the week ending January 4. Despite the gain in the stock price, DowDuPont traded 9.8% below the 100-day moving average price of $60.71. DowDuPont’s 100-day moving average has fallen from a high of $72.06 to the current levels, which indicates weakness in the stock. DowDuPont struggled in 2018 with a decline of 24.9%. However, DowDuPont has started 2019 on a positive note. DowDuPont’s 14-day relative strength index of 52 indicates that the stock isn’t overbought or oversold. Investors could hold DowDuPont indirectly by investing in the Materials Select Sector SPDR Fund (XLB). XLB has invested 21.9% of its portfolio in DowDuPont. XLB also provides exposure to Linde (LIN), Air Products and Chemicals (APD), and LyondellBasell (LYB) with weights of 15.1%, 6.2%, and 4.7%, respectively, as of January 4. Continue to Next Part Browse this series on Market Realist: * Part 2 - Celanese Completed the Next Polymers Acquisition * Part 3 - Westlake Chemical Completed the Nakan Acquisition * Part 4 - A. Schulman Announces Dividend for the Convertible Special Stock
Nucor Corp. said Monday it expects to create about 400 new full-time jobs as it invests $1.35 billion to build a new steel mill in the U.S. midwest. The stock rose 2.4% in premarket trade. the mill, which will be capable of producing 1.2 million tons of steel plate products a year, is expected to be fully operational in 2022. "This administration is taking the decisive and meaningful actions that American manufacturers need to compete on a level playing field," said Chief Executive John Ferriola. "Tax reform, continued improvements to our regulatory approach and strong trade enforcement are giving businesses like ours the confidence to make long-term capital investments here in the U.S. that create jobs and ensure our success for decades to come." The stock has dropped 20.7% over the past 12 months, while the SPDR Materials Select Sector ETF has declined 18.4% and the S&P 500 has slipped 7.7%.
Analysts’ interest in International Flavors & Fragrances (IFF) has waned since the beginning of 2018. At present, 13 analysts are actively tracking the company. Among these analysts, 38% have recommended “buys,” 47% have recommended “holds,” and 15% have recommended “sells” on the stock.
Analyzing Specialty Chemical Companies Last Week(Continued from Prior Part)Praxair Surface Technologies won an award On December 20, Linde’s (LIN) subsidiary Praxair announced that its subsidiary Praxair Surface Technologies won Pratt & Whitney’s 2018 Supplier Sustainability Award.
On December 19, Air Products and Chemicals (APD) signed an agreement with N.V. Nederlandse Gasunie to supply three nitrogen plants. Dr. Samir J. Serhan, Air Products and Chemicals’ executive vice president, said, “We are honored to be part of the energy solution for The Netherlands. The negative sentiments in the market caused Air Products and Chemicals stock to fall 0.43%.
What Will the Fed’s December Meeting Mean for Markets? The Federal Reserve is set to meet December 18–19 for its last policy meeting of the year. The Fed has already raised interest rates three times this year and eight times since it started raising rates in December 2015.
In a press release on December 12, Air Products and Chemicals (APD) announced that it will open a new air separation unit in the Twin Cities in Minnesota. Air Products and Chemicals will build, own, and operate the new separation unit. The new facility is expected to begin its operations in mid-2020. The facilities will provide industrial gases to local customers and distributors in the region.
LyondellBasell (LYB) declared its fourth-quarter dividend in a press release on November 30. To be part of the dividend, investors should hold LyondellBasell shares at the close on December 10 in the company’s records. LyondellBasell is expected to pay the dividend on December 17.
PPG Industries Inc. said Monday it will raise prices on all of its industrial coatings products by 10%, effective Jan. 1 as permissible by contract. The company cited "unprecedented cost pressures" in raw materials, freight, energy and labor for the price increases. The stock rose 1% in morning trade. In the third quarter, the company said U.S. and Canada sales represented 43% of total revenue, Asia-Pacific sales represented 17%, Europe, Middle East and Africa represented 30% and Latin America accounted for 10%. "We continue to be diligent in offsetting costs and exercising cost-control measures across our supply chain to increase efficiency," said Tim Knavish, senior vice president of industrial coatings. "Despite these efforts, we must modify our pricing to ensure that we can continue to deliver exceptional technical support and solutions to our customers." The stock has shed 5.6% year to date, while the SPDR Materials Select Sector ETF has lost 8.2% and the S&P 500 has gained 4.4%.
December is believed to be a good month for U.S. equities and historical data affirm that belief. At the sector level, December brings some familiar opportunities accessible via exchange traded funds. Familiar because the sector ETFs with strong December reputations have historically performed well in November, too.
To help investors keep up with the markets, we present our ETF Scorecard. The Scorecard takes a step back and looks at how various asset classes across the globe are performing. The weekly performance is from last Friday’s open to this week’s Thursday close.
As we discussed in the previous part of this series, Fed Chairman Jerome Powell’s speech yesterday had a different tone than the one he made in October. Along with other data for the US economy, markets reacted sharply to the speech, ultimately falling into correction territory. Another important leading indicator, business investment, is also slowing.
The number of analysts tracking Eastman Chemical (EMN) has improved since its third-quarter earnings. Currently, 17 analysts are actively tracking the stock. Among the analysts, 59% recommended a “buy,” 41% recommended a “hold,” and none of the analysts recommended a “sell.” Analysts’ views and recommendations track the stock price.
On November 21, Linde (LIN), which merged with Praxair, announced that it signed an agreement with NLMK, an international steel product manufacturer, to supply industrial gases like oxygen, nitrogen, and argon to its Novolipetsk steel site in Russia. To supply the required gases, Linde will likely invest 100 million euros to build a new air separation unit at the steel plant facility. The new air separation plant is expected to have a capacity of 72,000 cubic meters of gaseous oxygen per hour.
In a press release on November 20, Air Products and Chemicals (APD) announced the key dates for its quarterly dividend. To be eligible for the dividend, investors should hold Air Products and Chemicals shares as of the close on January 2, 2019. The dividend will be paid on the outstanding shares.