PPG Industries, Inc. (PPG), headquartered in Pittsburgh, Pennsylvania, manufactures and distributes paints, coatings, and specialty materials. Valued at $25.2 billion by market cap, the company makes protective and decorative coatings, flat glass, fabricated glass products, continuous-strand fiber glass products, and industrial and specialty chemicals.
Shares of this leading paints and coatings manufacturer have underperformed the broader market over the past year. PPG has gained 1.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 19.3%. In 2026, PPG stock is up 10.1%, compared to the SPX’s 12.4% rise on a YTD basis.
Narrowing the focus, PPG’s underperformance is also apparent compared to the State Street Materials Select Sector SPDR ETF (XLB). The exchange-traded fund has gained about 15.7% over the past year. Moreover, the ETF’s 14.2% gains on a YTD basis outshine the stock’s returns over the same time frame.
PPG has underperformed due to persistent volume declines across key end-markets such as commercial construction and general manufacturing alongside specific segment drag within its automotive refinish coatings division, where lower body shop demand and shifting customer ordering patterns squeezed margins. Compounding these volume headwinds, input cost inflation across raw materials, energy, and logistics continuously challenged profitability, leading to mixed quarterly earnings execution. Additionally, sluggish economic recovery in European and Asian architectural coatings markets combined with investor caution over future margin expansion timing has weighed heavily on market sentiment, offsetting strength in high-margin segments like aerospace.
On Jul. 28, PPG reported its Q2 results, and its shares closed down more than 6% in the following trading session. Its adjusted EPS of $2.23 did not meet Wall Street expectations of $2.26. The company’s revenue was $4.5 billion, topping Wall Street forecasts of $4.4 billion. PPG expects full-year adjusted EPS in the range of $7.70 to $8.10.
For the current fiscal year, ending in December, analysts expect PPG’s EPS to grow 4.1% to $7.89 on a diluted basis. The company’s earnings surprise history is mixed. It beat or matched the consensus estimate in two of the last four quarters while missing the forecast on two other occasions.
Among the 23 analysts covering PPG stock, the consensus is a “Moderate Buy.” That’s based on 10 “Strong Buy” ratings, and 13 “Holds.”
This configuration is more bullish than two months ago, with nine analysts suggesting a “Strong Buy.”
On Aug. 5, Berenberg Bank analyst maintained a “Hold” rating on PPG and set a price target of $118, implying a potential upside of 4.6% from current levels.
The mean price target of $126.40 represents a 12% premium to PPG’s current price levels. The Street-high price target of $138 suggests an upside potential of 22.3%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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