PPG Industries’ stock performance
PPG Industries (PPG) so far in 2017 has had moderate returns. Since the beginning of 2017, PPG has risen 9.5% as of August 25, 2017. PPG stock has marginally outperformed the broad-based SPDR S&P 500 ETF (SPY) for the same period. Its peer Sherwin-Williams (SHW) has had the best return of 26.2%, primarily driven by the merger with Valspar. PPG has managed to outperform RPM International and Axalta (AXTA), which have returned -9.4% and 7.1%, respectively.
PPG’s performance was primarily driven by two quarters of good earnings that beat analysts’ estimate, although 2Q17 revenue fell short of analysts’ estimate. Positive developments in business driven by the complete stake acquisition of its IVC joint venture in Asia, the purchased minority stake in Taiwan Chlorine Industries, and the acquisition of The Crown Group. PPG also got rid of its glass business to focus on its core business. During the year, PPG expanded its capacity in Russia. It also reaffirmed that it has committed to spending $3.5 billion for acquisitions and share repurchases. However, the biggest setback was its failed bid to acquire Akzo Nobel. But so far, the positive factors have managed to give positive returns to investors.
Moving averages and RSI
The fall in PPG stock after its 2Q17 earnings has resulted in the stock trading 3.6% below its 100-day moving average of $107.64, indicating a weakness in the stock. PPG’s 14-day RSI (relative strength index) of 45 indicates that the stock is neither overbought nor oversold. A score below 30 indicates that the stock is oversold, while a score of 70 and above indicates that the stock is overbought.