Bull’s Eye Report: PPG Industries Inc.

The Diversified Chemicals sub-industry is red-hot right now

   

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.

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Company Symbol Industry Stock Rating YTD% Gain S.T.
Stop Loss
PPG Industries PPG Diversified Chemicals 8.7 +1.45% $134.18


Why We Like The Stock:

PPG Industries Inc. (NYSE: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. PPG is in the Diversified Chemicals sub-industry, which has been red-hot since 2012 began, evidenced by other Diversified Chemicals stocks like Valspar Corp. (NYSE:VAL), Sherwin Williams Co. (NYSE:SHW), FMC Corp. (NYSE:FMC), and Eastman Chemical Co. (NYSE:EMN). Since it’s new all-time highs in late December, PPG has pulled back modestly down towards its 50-day moving average. There is some support at $135, though we like PPG as a buy at current prices. With an immediate upside to $145 (and potentially much higher should it break above), the stock is worth a look. It’s not very common to find strong performers presenting good entry points, but in this case, that is exactly what we have.

We Would Be Buyers:

At the current price ( about $137.30), or on a pullback to $135.

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: 8.7

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.

Disclosure:

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.

 

          PPG Industries Inc – Last 3 Months

 Bull's Eye Report: PPG Industries Inc.

 

          PPG Industries Inc – Last 12 Months

 Bull's Eye Report: PPG Industries Inc.

 

          PPG Industries Inc – Last 5 Years

 Bull's Eye Report: PPG Industries Inc.


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