PPG Industries Inc. (PPG): Today's Featured Chemicals Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

PPG Industries ( PPG) pushed the Chemicals industry lower today making it today's featured Chemicals laggard. The industry as a whole closed the day up 0.4%. By the end of trading, PPG Industries fell $1.84 (-1.5%) to $121.37 on heavy volume. Throughout the day, 1.6 million shares of PPG Industries exchanged hands as compared to its average daily volume of 862,700 shares. The stock ranged in price between $120.12-$123.35 after having opened the day at $120.74 as compared to the previous trading day's close of $123.21. Other companies within the Chemicals industry that declined today were: Metabolix ( MBLX), down 16.7%, TOR Minerals International ( TORM), down 4.3%, Pacific Ethanol ( PEIX), down 3.9%, and Arabian American Development Company ( ARSD), down 3.8%.
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PPG Industries, Inc. manufactures and supplies protective and decorative coatings. PPG Industries has a market cap of $18.32 billion and is part of the basic materials sector. The company has a P/E ratio of 19.9, above the S&P 500 P/E ratio of 17.7. Shares are up 43.1% year to date as of the close of trading on Thursday. Currently there are 10 analysts that rate PPG Industries a buy, no analysts rate it a sell, and five rate it a hold.

TheStreet Ratings rates PPG Industries as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the positive front, Lightbridge ( LTBR), up 17.1%, Omnova Solutions ( OMN), up 7.3%, Flexible Solutions International ( FSI), up 6.8%, and Braskem ( BAK), up 5.3%, were all gainers within the chemicals industry with Westlake Chemical Corporation ( WLK) being today's featured chemicals industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the chemicals industry could consider Materials Select Sector SPDR ( XLB) while those bearish on the chemicals industry could consider ProShares Short Basic Materials Fd ( SBM).

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