PPG Industries (PPG) Launches Envirocron LUM Powder Coating

PPG Industries, Inc. PPG recently announced the launch of PPG Envirocron LUM coating. It is the industry’s first commercial retroreflective powder coating. The patent-pending coating is designed to improve visibility at night and during low-light conditions.

Till now, retroreflective items such as pavement markings, road signs and safety vests were possible with liquid paints, tapes and fabrics. PPG’s advancement unites the safety-enhancing properties of retroreflection with the benefits of a powder coating.

The newest launch has an excellent chip and abrasion resistance and one-coat corrosion protection. The coating is cost-effective due to its high transfer efficiency and reclaimability. It is expected to play a key role in PPG’s efforts to advance the sustainability of its customers and achieve 40% of sales from sustainably advantaged products by 2025.

PPG stated that it has been at the forefront of retroreflective powder coating technology for several years. The company’s talented R&D team and commitment to innovation made it possible to bring PPG Envirocron LUM coating to life and achieve a significant advancement in powder technology.

Shares of the company have declined 34.9% in the past year compared with a 15% fall of the industry.

Image Source: Zacks Investment Research

In its lastearnings call the company stated that it sees overall underlying demand for its products to remain strong, including sustained recovery in certain end-use markets. It expects further volume growth in automotive refinish and aerospace coatings businesses in the coming quarters.

PPG Industries projects earnings per share (EPS) between $1.44 and $1.74 for second-quarter 2022. Adjusted EPS is expected in the range of $1.60-$1.90, excluding amortization expenses of 14 cents and costs related to earlier approved and communicated business restructuring of 2 cents.

The company expects aggregate net sales volumes to be down a low-to-mid-single-digit percentage on a year-over-year basis in the second quarter.

PPG Industries, Inc. Price and Consensus

PPG Industries, Inc. price-consensus-chart | PPG Industries, Inc. Quote

Zacks Rank & Key Picks

PPG Industries currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Allegheny Technologies Inc. ATI, Cabot Corporation CBT and Nutrien Ltd. NTR.

Allegheny has a projected earnings growth rate of 1,030.8% for the current year. The Zacks Consensus Estimate for ATI's current-year earnings has been revised 40% upward in the past 60 days.

Allegheny’s earnings beat the Zacks Consensus Estimate in the last four quarters. It has a trailing four-quarter earnings surprise of roughly 128.9%, on average. ATI has gained around 7.3% in a year and currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Cabot, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 22.5% for the current year. The Zacks Consensus Estimate for CBT's earnings for the current year has been revised 6% upward in the past 60 days.

Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 9.7% over a year.

Nutrien has a projected earnings growth rate of 174.6% for the current year. The Zacks Consensus Estimate for NTR’s current-year earnings has been revised 30.7% upward in the past 60 days.

Nutrien’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 5.8%. NTR has gained 40.7% in a year. The company flaunts a Zacks Rank #1.
 

5 Stocks Set to Double

Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.