PPG Industries Inc. (PPG): Chemicals' Featured Underachiever Of The Day

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 down 4.4%. By the end of trading, PPG Industries fell $4.81 (-3.5%) to $131.44 on light volume. Throughout the day, 1.2 million shares of PPG Industries exchanged hands as compared to its average daily volume of three million shares. The stock ranged in price between $131.39-$135.46 after having opened the day at $135.17 as compared to the previous trading day's close of $136.25. Other companies within the Chemicals industry that declined today were: Ceres ( CERE), down 17.2%, Green Plains Renewable Energy ( GPRE), down 12.5%, Metabolix ( MBLX), down 12.1%, and NL Industries ( NL), down 10.8%.
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PPG Industries, Inc. operates as a coatings and specialty products company. PPG Industries has a market cap of $19.66 billion and is part of the basic materials sector. The company has a P/E ratio of 22.7, above the S&P 500 P/E ratio of 17.7. Shares are up 0.7% year to date as of the close of trading on Friday. Currently there are 12 analysts that rate PPG Industries a buy, no analysts rate it a sell, and six 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 revenue growth, good cash flow from operations, expanding profit margins, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

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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