PPG Industries’ High Hopes on New Launches
PPG launches new products
On July 11, 2017, PPG Industries (PPG) announced the introduction of two new coating products, Kwikspar 600 and Kwikspar SG. These products are corrosion resistant, and the main feature of this product is the ability to dry quickly. These coatings dry up eight times faster than existing polyurethane coatings and can be applied to metals directly.
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The products’ quick drying features should help improve the production of its finished products with quicker turnaround time, which can be cost effective.
PPG’s vice president for protective and marine coatings, Diane Kappas, stated: “The technology behind Kwikspar polyaspartic coatings makes them highly cost-effective solutions for steel building and structural components that require excellent corrosion resistance, weathering, and gloss and color retention.”
PPG’s performance last week
PPG had a good week last week (ended July 14), with the stock closing at $112.80 for a 1.6% gain. PPG maintained its upward trajectory, trading nearly 5.3% above its 100-day moving average price of $107.17. PPG has gained 19.0% since the beginning of 2017.
The analysts’ consensus indicates a further upside in the stock, with a target price of $114.80, implying a potential return of 1.8% over the closing price of $112.80 on July 14, 2017. PPG’s 14-day RSI (relative strength index) of 67 indicates that the stock is very close to moving into an overbought situation. (An RSI of 70 and above is an indication of overbought, while RSI of 30 and below tells us that the stock is oversold.)
Last week, PPG underperformed the Materials Select Sector SPDR Fund (XLB), which returned 2.1% for the week. XLB has 4.8% of its holdings in PPG Industries. The top holdings of the fund include Dow Chemical (DOW), DuPont (DD), and Monsanto (MON), which had weights of 12.2%, 12.0%, and 8.4%, respectively, on July 14, 2017.