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Here's Why You Should Invest in PPG Industries (PPG) Stock Now
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PPG Industries, Inc. (PPG - Free Report) is experiencing favorable market conditions and gaining from higher pricing, enhanced manufacturing efficiencies, cost discipline and strategic acquisitions.
As a Zacks Rank #1 (Strong Buy) stock, it presents an attractive investment option with growth prospects and an impressive earnings track record.
Estimates Northbound
The Zacks Consensus Estimate for PPG's second-quarter earnings has increased approximately 12% over the past three months. Similarly, the consensus estimate for 2023 has been revised around 6% upward during the same period.
Positive Earnings Surprise History
PPG has outperformed the Zacks Consensus Estimate in three out of the last four quarters. It has delivered a trailing four-quarter average earnings surprise of 6.8%.
Healthy Growth Potential
The Zacks Consensus Estimate for 2023 earnings is currently pegged at $7.25, implying year-over-year growth of 19.8%. Moreover, earnings are expected to register 8.9% growth in 2024.
An Outperformer
PPG has shown strong price performance, gaining 22.7% in the past year, outperforming the industry’s rise of 14.2% during the same period. The company recently reached its 52-week high of $149.66 on Jul 3, indicating positive market sentiment and upward momentum.
Image Source: Zacks Investment Research
Strategic Actions & Acquisitions to Drive Results
PPG Industries is currently experiencing several positive factors that are driving its growth and performance. One key factor is the implementation of higher pricing across its various segments, which has contributed to increased revenues and improved profitability. Additionally, the company is focused on enhancing its manufacturing efficiencies and cost discipline, leading to greater operational effectiveness and cost savings.
To address the challenges posed by weak demand in Europe and China, PPG has taken proactive measures. The company has implemented a comprehensive cost-cutting and restructuring strategy, aiming to optimize its working capital requirements and generate significant cost savings. These restructuring initiatives are expected to have a positive impact on PPG's financial performance, with an anticipated incremental restructuring savings of $10-$15 million in the second quarter of 2023.
Furthermore, PPG has been actively countering the impact of cost inflation in raw materials, energy, and logistics by raising selling prices across its business segments. This strategic approach, combined with improved manufacturing efficiencies and cost discipline, led to a substantial increase in profits during the first quarter. The company foresees these pricing measures to continue to support its margins in the remainder of 2023.
In its pursuit of sustainable growth, PPG is actively engaged in value-creating acquisitions. Notable acquisitions such as Tikkurila, Worwag and Cetelon are expected to contribute to the company's top line in 2023, further expanding its market presence and diversifying its product offerings.
The company is committed to enhancing shareholder returns. In 2022, the company returned approximately $570 million to shareholders through dividends and $190 million through share repurchases. In the first quarter alone, dividends worth around $145 million were paid out.
The Zacks Consensus Estimate for L.B. Foster’s current-year earnings is pegged at 53 cents per share, indicating year-over-year growth of 112.5%. The company’s shares have gained around 9.7% in the past year. FSTR beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 140.5%, on average.
Koppers currently carries a Zacks Rank #1. The consensus estimate for current-year earnings for KOP is currently pegged at $4.40, suggesting year-over-year growth of 6.3%. Koppers’ shares have rallied roughly 51.7% in the past year. KOP beat the Zacks Consensus Estimate in three of the last four quarters. It delivered a trailing four-quarter earnings surprise of 13.6%, on average.
The Zacks Consensus Estimate for ATI’s current-year earnings has been revised 3.7% upward in the past 60 days. ATI beat the Zacks Consensus Estimate in all the last four quarters, with the average earnings surprise being 13%. The company’s shares have gained 103.5% in the past year.
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Here's Why You Should Invest in PPG Industries (PPG) Stock Now
PPG Industries, Inc. (PPG - Free Report) is experiencing favorable market conditions and gaining from higher pricing, enhanced manufacturing efficiencies, cost discipline and strategic acquisitions.
As a Zacks Rank #1 (Strong Buy) stock, it presents an attractive investment option with growth prospects and an impressive earnings track record.
Estimates Northbound
The Zacks Consensus Estimate for PPG's second-quarter earnings has increased approximately 12% over the past three months. Similarly, the consensus estimate for 2023 has been revised around 6% upward during the same period.
Positive Earnings Surprise History
PPG has outperformed the Zacks Consensus Estimate in three out of the last four quarters. It has delivered a trailing four-quarter average earnings surprise of 6.8%.
Healthy Growth Potential
The Zacks Consensus Estimate for 2023 earnings is currently pegged at $7.25, implying year-over-year growth of 19.8%. Moreover, earnings are expected to register 8.9% growth in 2024.
An Outperformer
PPG has shown strong price performance, gaining 22.7% in the past year, outperforming the industry’s rise of 14.2% during the same period. The company recently reached its 52-week high of $149.66 on Jul 3, indicating positive market sentiment and upward momentum.
Image Source: Zacks Investment Research
Strategic Actions & Acquisitions to Drive Results
PPG Industries is currently experiencing several positive factors that are driving its growth and performance. One key factor is the implementation of higher pricing across its various segments, which has contributed to increased revenues and improved profitability. Additionally, the company is focused on enhancing its manufacturing efficiencies and cost discipline, leading to greater operational effectiveness and cost savings.
To address the challenges posed by weak demand in Europe and China, PPG has taken proactive measures. The company has implemented a comprehensive cost-cutting and restructuring strategy, aiming to optimize its working capital requirements and generate significant cost savings. These restructuring initiatives are expected to have a positive impact on PPG's financial performance, with an anticipated incremental restructuring savings of $10-$15 million in the second quarter of 2023.
Furthermore, PPG has been actively countering the impact of cost inflation in raw materials, energy, and logistics by raising selling prices across its business segments. This strategic approach, combined with improved manufacturing efficiencies and cost discipline, led to a substantial increase in profits during the first quarter. The company foresees these pricing measures to continue to support its margins in the remainder of 2023.
In its pursuit of sustainable growth, PPG is actively engaged in value-creating acquisitions. Notable acquisitions such as Tikkurila, Worwag and Cetelon are expected to contribute to the company's top line in 2023, further expanding its market presence and diversifying its product offerings.
The company is committed to enhancing shareholder returns. In 2022, the company returned approximately $570 million to shareholders through dividends and $190 million through share repurchases. In the first quarter alone, dividends worth around $145 million were paid out.
PPG Industries, Inc. Price and Consensus
PPG Industries, Inc. price-consensus-chart | PPG Industries, Inc. Quote
Zacks Rank & Key Picks
Some other top-ranked stocks in the basic materials space include L.B. Foster Company (FSTR - Free Report) , Koppers Holdings Inc. (KOP - Free Report) and ATI Inc. (ATI - Free Report) , carrying a Zacks Rank #1 each. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for L.B. Foster’s current-year earnings is pegged at 53 cents per share, indicating year-over-year growth of 112.5%. The company’s shares have gained around 9.7% in the past year. FSTR beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 140.5%, on average.
Koppers currently carries a Zacks Rank #1. The consensus estimate for current-year earnings for KOP is currently pegged at $4.40, suggesting year-over-year growth of 6.3%. Koppers’ shares have rallied roughly 51.7% in the past year. KOP beat the Zacks Consensus Estimate in three of the last four quarters. It delivered a trailing four-quarter earnings surprise of 13.6%, on average.
The Zacks Consensus Estimate for ATI’s current-year earnings has been revised 3.7% upward in the past 60 days. ATI beat the Zacks Consensus Estimate in all the last four quarters, with the average earnings surprise being 13%. The company’s shares have gained 103.5% in the past year.