Upcoming fourth-quarter earnings
In a press release on January 8, PPG Industries (PPG) said it would announce its fourth-quarter earnings on January 17 before the market opens. The earnings will be followed by a teleconference at 2:00 PM EST on the same day to discuss the results.
In this series, we’ll discuss PPG Industries’ stock performance since its third-quarter earnings. We’ll discuss analysts’ revenue expectations, adjusted EPS estimates, and analysts’ recommendations.
PPG Industries announced its third-quarter earnings on October 18. Since then, the stock has gained 2.0% as of January 15. In comparison, RPM International (RPM), Sherwin-Williams (SHW), and Axalta (AXTA) have fallen 11.1%, 6.2%, and 5.4%, respectively. PPG Industries has outperformed the S&P 500 (SPY), which declined 5.7%.
PPG Industries’ stock prices bucked the sell-off and remained positive. The company met the third-quarter earnings expectations. PPG Industries’ revenues beat the estimates. The company’s commitment to invest ~$1 billion towards acquisitions and share repurchases appears to be on track. PPG Industries has acquired a few coating companies since its third-quarter earnings to drive future growth. The company’s continued share repurchases are expected to add value to the remaining shareholders. If PPG Industries can surprise analysts with its fourth-quarter earnings, then the stock prices could increase.
Moving average and RSI
PPG Industries is trading 4.3% below its 100-day moving average of $105.52, which indicates weakness in the stock. The company’s 14-day RSI (relative strength index) of 49 suggests that the stock isn’t overbought or oversold. An RSI of 30 and below indicates that the stock is oversold, while an RSI of 70 and above indicates that the stock is overbought.