This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

5 Stocks to Buy for a Santa Claus Rally

PPG Industries

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Coating and chemical maker PPG Industries (PPG) has been having a mixed year in 2011. While the firm's revenue and profitability are bumping up against pre-recession highs, that fundamental success isn't being reflected in shares. Even so, investors shouldn't be ignoring this stock at current levels -- especially with a 2.82% yield.

PPG's core coatings business generates nearly three-quarters of the firm's sales, providing customers with the materials to paint and protect everything from airplanes and appliances to houses. Because PPG is the leader in coatings, the firm is able to generate high recurring revenues through industrial customers who get proprietary formulations direct from the source. That stickiness should help to buoy shares even as industrial numbers in the broad economy have failed to excite investors.

Because of PPG's exposure to the industrial segment, the firm has seen an increasing share of its business coming from the emerging markets. Today, emerging sales make up more than a quarter of the company's total revenues, a factor that insulates the firm somewhat from sluggishness in the Western manufacturing space.

Even though a growth-by-acquisition strategy has built a material debt load for PPG, ample cash generation capabilities more than offset it.

One big bet on PPG in the most recently reported quarter comes from Ken Fisher's Fisher Investments, whose 6.3 million-share position in the stock comprises 1.5% of its total portfolio.

3 of 6

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,067.56 -30.89 -0.18%
S&P 500 2,002.28 -1.09 -0.05%
NASDAQ 4,598.1880 +17.9170 0.39%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs