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Analyzing RPM International’s Stock Performance

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RPM International’s earnings

In a press release on March 15, 2018, RPM International (RPM) said that it will announce its fiscal 3Q18 earnings on April 5, 2018, before the market opens. Management will hold a conference call to discuss the results at 10:00 AM EST on April 5. RPM International follows June 1–May 31 as its financial year. In this series, we’ll provide an overview of RPM International’s stock performance in 2018, analysts’ revenue estimate for 3Q18, EPS (earnings per share) estimates, analysts’ recommendations, the short interest, and RPM International’s latest valuations.

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Stock performance in 2018

Since the beginning of 2018, RPM International has declined 9.6%. RPM International has underperformed its peers Axalta (AXTA), PPG Industries (PPG), and Sherwin-Williams (SHW). They have declined 6.8%, 5.9%, and 6.0%, respectively, during the same period. RPM International’s weaker stock performance is primarily due to prevailing volatility in the stock market. Increased concerns about the Fed raising the interest rates in 2018, ongoing trade wars between China and the US, and political tensions have made the markets unsettled. Also, RPM International is a high beta stock. RPM International has a beta of 1.4, which means that the stock prices fall more than the broader market.

RPM International reported better-than-expected fiscal 2Q18 earnings. The trend is expected to continue in 3Q18. RPM International has continued its growth strategy with more acquisitions. These positives along with better 3Q18 earnings could help RPM International recover some lost ground.

Moving average and RSI

The decline in RPM International stock caused it to trade 8.90% below the 100-day moving average price of $52.03, which indicates the stock’s downward trend. RPM International’s 14-day RSI (relative strength index) of 40 shows that the stock isn’t overbought or oversold. An RSI of 70 and above indicates that the stock is overbought, while an RSI of 30 and below suggests that the stock is oversold.

Investors could hold RPM International indirectly by investing in the Vanguard Materials ETF (VAW). VAW has invested 0.8% of its portfolio in RPM International as of March 28, 2018.

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