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

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 higher today making it today's featured chemicals winner. The industry as a whole closed the day up 0.8%. By the end of trading, PPG Industries rose $3.29 (2.1%) to $158.84 on light volume. Throughout the day, 569,060 shares of PPG Industries exchanged hands as compared to its average daily volume of 1,122,800 shares. The stock ranged in a price between $155.89-$158.89 after having opened the day at $156.71 as compared to the previous trading day's close of $155.55. Other companies within the Chemicals industry that increased today were: Cabot Corporation ( CBT), up 5.6%, Intrepid Potash ( IPI), up 4.3%, Chemtura Corporation ( CHMT), up 3.8% and Verenium Corporation ( VRNM), up 3.8%.
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PPG Industries, Inc. operates as a coatings and specialty products company. PPG Industries has a market cap of $22.3 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 14.9% year to date as of the close of trading on Thursday. Currently there are 12 analysts that rate PPG Industries a buy, no analysts rate it a sell, and 6 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, compelling growth in net income, expanding profit margins, impressive record of earnings per share growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the negative front, Flexible Solutions International ( FSI), down 8.6%, Amyris ( AMRS), down 4.2%, Ikonics Corporation ( IKNX), down 3.2% and Metabolix ( MBLX), down 2.9%.

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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