PPG Industries’ stock performance
PPG Industries (PPG) has shown a good performance since the beginning of 2017. Year-to-date, PPG has risen 16.6% and has outperformed the broad-based SPDR S&P 500 ETF (SPY), which has returned 8.0% for the same period. However, in comparison to its peers, it has had a mixed performance. Sherwin-Williams (SHW) and Axalta (AXTA) have managed to outperform PPG with returns of 33.3% and 17.5%, respectively, while RPM International (RPM) underperformed PPG with a return of 0.3%.
PPG’s strong performance is due to its better-than-expected 1Q17 earnings. The positive business developments have also pushed the stock prices up. PPG acquired the remaining 50% in its IVC joint venture in Asia. PPG bought a minority stake in Taiwan Chlorine Industries and completely exited the fiberglass business. PPG also expanded its capacity in Russia, which will help to improve its footprint. However, its bid to acquire Akzo Nobel failed.
Moving averages and RSI
PPG Industries’ strong performance has resulted in the stock trading 4.5% above its 100-day moving average price of $105.70, indicating an upward trend in the stock. Its 52-week low is $89.64, while its 52-week high is $111.22. PPG’s relative strength index (or RSI) of 58 indicates that the stock is neither overbought nor oversold.
In this series, we’ll look into PPG’s current debt situation, debt servicing abilities, latest recommendations, and latest valuations.