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 down 0.6%. By the end of trading, PPG Industries fell $1.58 (-1.0%) to $153.56 on light volume. Throughout the day, 554,273 shares of PPG Industries exchanged hands as compared to its average daily volume of 922,100 shares. The stock ranged in price between $152.85-$156.21 after having opened the day at $154.89 as compared to the previous trading day's close of $155.14. Other companies within the Chemicals industry that declined today were: Pacific Ethanol ( PEIX), down 6.0%, Kronos Worldwide ( KRO), down 3.8%, PetroLogistics ( PDH), down 3.6% and Lightbridge ( LTBR), down 3.1%.
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PPG Industries, Inc. operates as a coatings and specialty products company. PPG Industries has a market cap of $21.9 billion and is part of the basic materials sector. The company has a P/E ratio of 19.5, above the S&P 500 P/E ratio of 17.7. Shares are up 14.6% year to date as of the close of trading on Monday. 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 positive front, Penford Corporation ( PENX), down 2.3%, OM Group ( OMG), down 2.1%, Verenium Corporation ( VRNM), down 1.8% and Innospec ( IOSP), down 1.7% , were all gainers within the chemicals industry with Mosaic ( MOS) 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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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