PPG Industries (PPG) Rises But Trails Market: What Investors Should Know

The latest trading session saw PPG Industries (PPG) ending at $149.51, denoting a +0.51% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 0.59% for the day. Meanwhile, the Dow experienced a rise of 0.68%, and the technology-dominated Nasdaq saw an increase of 0.66%.

The the stock of paint and coatings maker has risen by 9.73% in the past month, leading the Basic Materials sector's gain of 6.6% and the S&P 500's gain of 5.16%.

The upcoming earnings release of PPG Industries will be of great interest to investors. It is anticipated that the company will report an EPS of $1.49, marking a 22.13% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $4.27 billion, indicating a 1.92% increase compared to the same quarter of the previous year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.64 per share and a revenue of $18.16 billion, indicating changes of +26.28% and +2.89%, respectively, from the former year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for PPG Industries. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, PPG Industries is carrying a Zacks Rank of #3 (Hold).

Looking at its valuation, PPG Industries is holding a Forward P/E ratio of 19.46. This signifies a premium in comparison to the average Forward P/E of 17.8 for its industry.

Investors should also note that PPG has a PEG ratio of 1.26 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Chemical - Specialty industry had an average PEG ratio of 2.77 as trading concluded yesterday.

The Chemical - Specialty industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 147, placing it within the bottom 42% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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

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