Like a host of other companies, top-ranked paint and coatings maker PPG Industries got slammed in the coronavirus crash a year ago. And like some others, it’s not only recovered but prospered in the subsequent recovery. In a welcome move, the Relative Strength Rating for PPG Industries (PPG) climbed to 72 on Tuesday, up from 69 the day before.
Pittsburgh-based PPG’s 72 RS Rating means it’s outperformed 72% of all stocks, regardless of industry group, over the past year. Top stocks typically have an RS Rating north of 80 as they launch their biggest climbs. See if PPG Industries can continue to show renewed price strength and clear that threshold.
PPG Buys Germany’s Cetelon
On Monday, PPG Industries announced a deal to buy Cetelon Lackfabrik GmbH, a German manufacturer of coatings for auto and light truck wheel applications.
“The strategic acquisition of Cetelon will allow PPG to further build upon its existing coatings product portfolio, liquid and powder coating technologies and color matching capabilities,” said Rebecca Liebert, PPG executive vice president.
Among its other ratings, PPG has an 82 EPS Rating. Additionally, it carries a good but not yet great 83 Composite Rating. The Composite Rating contains a mix of five other IBD stock ratings. The best growth stocks have a Composite Rating of 90 or better.
And it has a B Accumulation/Distribution Rating, indicating moderate buying by funds and other institutions.
In addition to coatings, it makes glass and chemicals for a wide variety of industries including aerospace and autos.
In terms of fundamental health, PPG Industries has posted rising EPS growth in each of the last three reports. Revenue growth has also moved higher over the same time frame.
Last quarter, earnings shot up 44% to $1.88 per share. The prior two quarters it reported EPS growth of 16% and then 21%. Sales last quarter rose 15% to $3.88 billion.
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PPG Industries is now considered extended and out of buy range after clearing a 153.91 buy point in a first-stage cup without handle. See if the stock forms a new chart pattern or follow-on buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week line.
As you try to find the best stocks to buy and watch, be sure to pay attention to relative price strength.
This unique rating tracks technical performance by using a 1 (worst) to 99 (best) score that identifies how a stock’s price action over the last 52 weeks matched up against all other stocks.
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