PPG Industries
PPG
$113.63
+1.06%
PPG Industries is a global leader in paints, coatings, and specialty materials, serving diverse end markets including automotive, aerospace, industrial, and architectural sectors. As the world's second-largest producer of paints and coatings, PPG differentiates itself through its extensive product portfolio, global footprint, and strong brand recognition across both professional and DIY segments. The current investor narrative centers on PPG's recovery from a challenging 2025, marked by a significant selloff in early 2026, followed by a rebound driven by improving demand and cost management. Recent news highlights PPG as one of several oversold S&P 500 stocks with potential upside, while analysts maintain a generally positive outlook with a consensus 'Buy' rating.…
PPG
PPG Industries
$113.63
Related headlines
Investment Opinion: Should I buy PPG Today?
Rating: Buy. PPG is a quality cyclical stock trading at a significant discount to its historical valuation and industry peers, with a consensus 'Buy' rating and an average target price of $126.20, implying 10.6% upside. The thesis is that the market is overly pessimistic about PPG's cyclical risks, and the company's strong market position and cash generation will drive earnings recovery.
Sign up to view all
PPG 12-Month Price Forecast
The AI assessment is bullish with medium confidence. PPG's valuation is attractive, and the company is expected to grow earnings, but risks such as negative equity and revenue volatility temper confidence. If PPG can sustain revenue growth and improve margins, the stock is likely to re-rate toward the average target. However, if the balance sheet deteriorates or demand weakens, the thesis would be downgraded to neutral.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on PPG Industries's 12-month outlook, with a consensus price target around $126.20 and implied upside of +11.1% versus the current price.
Average Target
$126.20
0 analysts
Implied Upside
+11.1%
vs. current price
Analyst Count
—
covering this stock
Price Range
$115 - $138
Analyst target range
PPG is covered by 20 analysts, with a consensus recommendation of 'Buy' (mean rating of 2.17 on a scale where 1 is Strong Buy and 5 is Sell). The average target price is $126.20, implying an upside of 10.6% from the current price of $114.11. The distribution of ratings is not provided, but the mean rating suggests a bullish tilt. Recent actions from major firms like BMO Capital (Outperform), Mizuho (Outperform), and Wells Fargo (Overweight) reinforce the positive sentiment, while RBC Capital and Citigroup maintain neutral stances.
Bulls vs Bears: PPG Investment Factors
PPG presents a mixed picture: it trades at a historically low valuation with a 33% discount to industry peers, and analysts see 10.6% upside, but the stock has underperformed the market significantly over the past year. The bull case rests on valuation support and expected earnings growth, while the bear case highlights balance sheet leverage and revenue volatility. Currently, the evidence slightly favors the bull side given the attractive PEG ratio and analyst consensus, but the key tension is whether PPG can sustain revenue growth and improve margins to justify a re-rating. If the company delivers on earnings expectations, the stock could re-rate toward the average target; if not, it may remain range-bound.
Bullish
- Attractive valuation with 33% discount to industry: PPG's trailing PE of 14.72x is well below the industry average of 22x, representing a 33% discount. This valuation gap suggests the market is pricing in cyclical risks that may be overstated, offering potential upside if earnings stabilize.
- Positive earnings growth expected: The forward PE of 13.15x is lower than the trailing PE, indicating analysts expect earnings to grow. With a PEG ratio of 0.32, the stock is priced attractively relative to its growth rate, suggesting undervaluation.
- Strong analyst consensus with 10.6% upside: 20 analysts rate PPG a 'Buy' with a mean rating of 2.17, and the average target price of $126.20 implies a 10.6% upside from the current price of $114.11. Recent upgrades from BMO, Mizuho, and Wells Fargo reinforce positive sentiment.
- Resilient revenue growth in Q1 2026: Q1 2026 revenue grew 6.68% year-over-year to $3.93 billion, driven by both Performance and Industrial Coatings segments. This growth demonstrates demand resilience despite macroeconomic headwinds.
Bearish
- Negative relative strength vs S&P 500: PPG's 1-year return of 1.93% lags the S&P 500's 20.37% gain, with relative strength of -18.44% over the past year. This underperformance suggests persistent investor skepticism and potential for continued weakness.
- High debt-to-equity ratio: PPG's debt-to-equity ratio is -2.10, reflecting negative shareholder equity due to buybacks and impairments. This financial structure increases leverage risk and limits financial flexibility.
- Revenue volatility and sequential decline: While Q1 2026 grew YoY, revenue declined sequentially from $4.195B in Q2 2025 to $3.93B in Q1 2026. This volatility indicates uneven demand and potential for further weakness in cyclical end markets.
- Negative ROE and balance sheet concerns: PPG's return on equity is -44.48%, reflecting negative equity. This unusual metric signals that the company has been returning capital aggressively, but it also raises questions about long-term balance sheet health.
PPG Technical Analysis
PPG's price trend over the past year shows a volatile recovery pattern. The stock has gained 1.93% over the last year, but this masks significant swings, including a 26.1% maximum drawdown from its 52-week high. Currently trading at $114.11, the stock sits at 85.5% of its 52-week range (between $93.39 low and $133.43 high), indicating it has recovered substantially from the lows but remains below the highs. This positioning suggests a stock in a recovery phase, with potential for further upside if momentum continues, but also vulnerable to resistance near the upper end of its range.
Beta
1.06
1.06x market volatility
Max Drawdown
-26.1%
Largest decline past year
52-Week Range
$93-$133
Price range past year
Annual Return
+1.8%
Cumulative gain past year
| Period | PPG Return | S&P 500 |
|---|---|---|
| 1m | -3.2% | +2.5% |
| 3m | +5.4% | +2.7% |
| 6m | -10.2% | +11.1% |
| 1y | +1.8% | +20.5% |
| ytd | +8.9% | +12.3% |
Bobby - Your AI Investment Partner
Get real-time data, AI-driven personalized investment analysis to make smarter investment decisions
PPG Fundamental Analysis
PPG's revenue trajectory shows a mixed picture. In Q1 2026, revenue was $3.93 billion, up 6.68% year-over-year, but this follows a period of fluctuating growth: Q2 2025 revenue was $4.195 billion, Q3 2025 was $4.082 billion, and Q4 2025 was $3.914 billion, indicating a slight sequential decline. The revenue growth is driven by both the Performance Coatings segment ($1.414 billion) and Industrial Coatings segment ($1.656 billion), with the latter being the largest contributor. The company's growth is modest but positive, reflecting resilient demand in key end markets despite macroeconomic headwinds.
Quarterly Revenue
$3.9B
2026-03
Revenue YoY Growth
+6.7%
YoY Comparison
Gross Margin
42.1%
Latest Quarter
Free Cash Flow
$1.2B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
Open an Account, get $2 TSLA now!
Valuation Analysis: Is PPG Overvalued?
Given PPG's positive net income, the PE ratio is the primary valuation metric. The trailing PE is 14.72x, while the forward PE is 13.15x, indicating the market expects earnings growth. The gap between trailing and forward PE suggests a modest improvement in earnings is anticipated. Compared to the industry average PE of 22x (from valuation data), PPG trades at a 33% discount, which is notable given its strong market position and consistent profitability. This discount may reflect concerns about cyclicality and recent margin pressures, but it also suggests potential value. Historically, PPG's PE has ranged from roughly 13x to 35x over the past five years, with the current trailing PE near the lower end of that range, implying the stock is trading at a historically attractive valuation.
PE
14.7x
Latest Quarter
vs. Historical
Low-End
5-Year PE Range 13x~36x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
10.1x
Enterprise Value Multiple
Investment Risk Disclosure
Financial and operational risks are notable. PPG's debt-to-equity ratio of -2.10 indicates negative shareholder equity, which is a red flag for balance sheet stability. This negative equity stems from aggressive share buybacks and impairments, leaving the company with high leverage. The current ratio of 1.62 provides some liquidity cushion, but the negative equity could limit financial flexibility in a downturn. Additionally, revenue has been volatile, with sequential declines from $4.195B in Q2 2025 to $3.93B in Q1 2026, suggesting demand uncertainty. The net margin of 9.93% is decent, but operating margin of 13.66% could compress if input costs rise or pricing power weakens.