Bull’s Eye: PPG Industries (PPG)

Keep a tight leash on this trade just in case markets continue reacting to Syria concerns

   

At StateoftheMarkets.com, we strive to “own the best and ignore the rest” in our equity portfolios. Toward this end, each day we search our database for a “top stock” (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical “set up” and a good entry point.

In short, when our equity team is looking to add a stock to one of our portfolios, the “bull’s eye” stock shown below is generally their first choice.

Company Symbol Industry Stock Rating YTD% Gain S.T. Stop Loss
PPG Industries PPG Diversified Chemicals 7.0 +18.41% $156.25

Why We Like The Stock:

PPG Industries (PPG) is our most compelling buy today due to the fact that it is a top rated stock (in terms of earnings strength and company/industry performance) with a positive technical set-up. Diversified chemicals stocks have been a mixed bag, as stocks like Valspar (VAL), Corning (GLW) and Sherwin-Williams (SHW) have faltered in recent months. PPG, on the other hand, is a beautiful up-trending chart that has shown no signs of letting up. The stock is currently resting comfortably just above its 50-day moving average, despite pulling back amidst the Syria fears that have taken over the market the past 24 hours. Based on the action, PPG doesn’t seem like its headed any lower, so now looks like a great time to buy the high-flyer on a pullback. We would set a stop at $156.25 — a short leash, in case the market continues to tumble while digesting the ongoing situation in Syria.

We Would Be Buyers:

At the current price (~$157.95).

Company Profile:

PPG Industries, Inc. (PPG) is a global supplier of protective and decorative coatings. PPG operates in six business segments. The Performance Coatings, Industrial Coatings and Architectural Coatings-EMEA segments supply protective and decorative finishes for customers in a range of end use markets, including industrial equipment, appliances and packaging; factory-finished aluminum extrusions and steel and aluminum coils; marine and aircraft equipment; automotive original equipment; and other industrial and consumer products. The Optical and Specialty Materials segment consist of the optical products and silicas businesses. It is a producer and supplier of basic chemicals. Glass segment produces flat glass and continuous-strand fiber glass. The Glass business segment consists of the flat glass and fiber glass businesses. In January 2013, the combined company formed by uniting Georgia Gulf with PPG’s former commodity chemicals business is named Axiall Corporation.

Stock Rating: 7.0

The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 – 10 with 10 being the highest.

PPG Industries – Last Three Months

ppg 1 Bulls Eye: PPG Industries (PPG)

PPG Industries – Last 12 Months

ppg 2 Bulls Eye: PPG Industries (PPG)

PPG Industries – Last Five Years

ppg 3 Bulls Eye: PPG Industries (PPG)
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At the time of publication the editor and affiliated companies own the following positions: PPG

Note: Positions may be bought or sold while this publication is in circulation without notice.


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