) touched a new 52-week high of $158.89 on May 17, higher than
its previous high of $157.85. Its shares rose $3.29 (or 2.1%) to
clock $158.84 at the end of the trading session on that day.
The Pittsburgh-based coatings giant, which has a market cap of
roughly $22.7 billion, has seen its share price improve roughly
18% year-to-date and 66% over a year. Average volume of shares
traded over the last three months is around 1,104K. The stock,
which broke above its 200-day moving average in late 2011,
continues to rally upward (with minor retracements) and trade
incessantly above it, manifesting the bullish trend.
What's Driving PPG Up?
Shares of PPG Industries are heading higher following its
healthy first-quarter 2013 results, reported on Apr 18. Its
profit for the quarter climbed manifold on strength across
automotive OEM and aerospace markets. A one-time gain on sale of
PPG Industries' commodity chemicals business also boosted the
Adjusted earnings of $1.58 per share beat the Zacks Consensus
Estimate of $1.56. Strong momentum across North America and Asia
aided the results.
PPG Industries has a diversified business, both in terms of
products offered and geographical presence. It has a leading
position in several paints and coatings end markets.
PPG Industries is taking steps to grow its business
inorganically by making a number of acquisitions. The recent
$1.05 billion acquisition of the North American architectural
coatings business of Dutch paints company,
), has expanded PPG Industries' branded paint product offerings
and scale in the North American architectural paint market. The
company is poised to realize attractive synergies from the
Moreover, PPG Industries is pursuing restructuring of its
European operation, which is expected to fetch meaningful cost
savings this year. It also has an impressive record of returning
cash to shareholders through dividends and share buybacks. Its
board, in Apr 2013, approved a raise of 2 cents per share in the
quarterly dividend to 61 cents per share. The dividend increase
represents a testimony of the company's healthy balance
That said, we account for the softness in Europe and a
challenging demand environment in the region. Moreover, raw
material inflation and currency headwinds remain concerns for PPG
Industries. As such, the stock currently carries a Zacks Rank #3
Other Stocks to Consider
Other companies in the chemical space that are worth
Shin-Etsu Chemical Co., Ltd.
). Both retain a Zacks Rank #1 (Strong Buy).
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PPG INDS INC (PPG): Free Stock Analysis
SHIN-ETSU CHEM (SHECY): Get Free Report
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