Valued at a market cap of $25.5 billion, PPG Industries, Inc. (PPG) is a global leader in paints, coatings, and specialty materials. The company operates across more than 70 countries, serving diverse markets including automotive, aerospace, industrial, packaging, and architectural applications.
Shares of the Pittsburgh, Pennsylvania-based company have underperformed the broader market over the past 52 weeks. PPG stock has declined 8.8% over this time frame, while the broader S&P 500 Index ($SPX) has increased nearly 14%. Moreover, shares of the company have decreased 6.1% on a YTD basis, compared to SPX's 8.4% return.
Looking closer, PPG Industries stock has also lagged behind the Materials Select Sector SPDR Fund's (XLB) marginal decline over the past 52 weeks.
Despite PPG Industries beating revenue expectations with $4.2 billion on Jul. 29, shares fell 5.3% the next day as profit fell to $450 million. Adjusted EPS of $2.22 matched estimates but declined from $2.35 in the prior-year quarter. Additionally, segment weakness, such as a 5% sales drop in Global Architectural Coatings and a 5% decline in Industrial Coatings due to divestitures, outweighing the strength in Performance Coatings.
For the fiscal year ending in December 2025, analysts expect PPG's adjusted EPS to grow marginally year-over-year to $7.88. The company's earnings surprise history is mixed. It beat or met the consensus estimates in two of the last four quarters while missing on two other occasions.
Among the 26 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on nine “Strong Buy” ratings and 17 “Holds.”
On Jul. 24, Citi analyst Patrick Cunningham reiterated a “Buy” rating on PPG Industries and set a price target of $130.
As of writing, the stock is trading below the mean price target of $128.09. The Street-high price target of $154 implies a modest potential upside of 37.3% from the current price levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
