RPM International Soared 10.5%—What’s Fueling This Unstoppable Surge?

Summary
• RPM’s stock price jumped 10.5% to $124.81, hitting an intraday high of $126.05
• Earnings report revealed record $2.08B quarterly sales and $1.72 adjusted EPS, exceeding estimates
• Dynamic PE ratio of 25.97 suggests strong investor confidence despite 52-week high of $141.79

Today’s 10.5% surge in RPM International’s stock has ignited market speculation, with the price surging from $120.29 to $126.05 in a single session. This volatility follows the company’s record fiscal 2025 fourth-quarter results, which highlighted double-digit adjusted EBIT growth and strategic reorganization. Traders are now scrutinizing technicals and options data to decipher whether this move is a breakout or a short-lived spike.

Record Earnings and Strategic Reorganization Drive RPM’s Bullish Surge
RPM’s 10.5% rally stems from its record Q4 and FY2025 financials, including 3.7% sales growth to $2.08B, 10.3% adjusted EPS increase to $1.72, and 13.2% adjusted EBIT margin. The company attributed the performance to MAP 2025 operational improvements, strategic acquisitions (e.g., The Pink Stuff), and a reorganization into three streamlined segments. CEO Frank Sullivan emphasized leveraging top-line growth with efficiency gains, while fiscal 2026 guidance—forecasting low-to-mid-single-digit sales and high-single-to-low-double-digit EBIT growth—fueled investor optimism.

Building Products Sector Mixed as RPM Outpaces Peers
While RPM’s stock surged, the broader Building Products sector showed muted movement. Sector leader Owens Corning (OC) rose just 0.17%, reflecting divergent performance. RPM’s outperformance highlights its unique focus on high-performance building systems and MAP 2025-driven margin expansion, contrasting with peers facing softer DIY demand or supply chain headwinds.

Options and ETFs for Capitalizing on RPM’s Momentum
• 52W High: $141.79 (above current price)
• 52W Low: $95.28 (deep support)
• 200D MA: $120.51 (below current price)
• RSI: 49.40 (neutral)
• MACD: 0.0917 (bullish divergence)

RPM’s short-term bullish trend and long-term ranging pattern suggest a continuation setup. Key levels to watch: 115.15–116.02 (200D support/resistance) and 110.45–110.63 (30D support). The 30D support at $110.45 and 200D resistance at $116.02 frame a tight trading range. With RSI near neutral and MACD divergence, a break above $126.05 could trigger a rally toward the 52W high.

Top Option 1: RPM20250815C125
• Type: Call
• Strike: $125
• Expiry: 2025-08-15
• IV: 31.32% (moderate)
• LVR: 35.42% (high)
• Delta: 0.4817 (moderate sensitivity)
• Theta: -0.1454 (strong time decay)
• Gamma: 0.0408 (high sensitivity to price swings)
• Turnover: 3,415 (liquid)
This call offers high leverage (35.42%) and strong gamma for aggressive bulls expecting a 5% move to $131.05, yielding a 44.8% gain. The moderate IV and liquid turnover make it a viable high-risk, high-reward play.

Top Option 2: RPM20250815C120
• Type: Call
• Strike: $120
• Expiry: 2025-08-15
• IV: 29.53% (moderate)
• LVR: 20.46% (high)
• Delta: 0.6903 (moderate sensitivity)
• Theta: -0.1558 (strong time decay)
• Gamma: 0.0383 (high sensitivity)
• Turnover: 10,040 (very liquid)
This call balances leverage (20.46%) and liquidity, ideal for a 5% move to $131.05. With a lower strike price, it offers more intrinsic value, making it a safer aggressive play compared to the $125 call.

Aggressive bulls should consider RPM20250815C120 into a bounce above $126.05, while high-risk traders may chase RPM20250815C125 for a breakout move. Both contracts benefit from RPM’s strong gamma and moderate IV, positioning them for rapid gains if the stock continues higher.

Backtest RPM International Stock Performance
RPM International Inc. experienced a notable intraday surge of 10% on July 24, 2025, following the announcement of its fiscal 2025 fourth-quarter and year-end results. Let's analyze the stock's performance after this significant event.1. Post-Surge Performance: - The 10% surge in RPM's stock price on July 24, 2025, was a positive reaction to the company's strong financial results for the quarter ended May 31, 2025. - The reported quarterly adjusted earnings were $1.72 per share, higher than the same quarter last year's EPS of $1.56. - Revenue rose by 3.7% to $2.08 billion, surpassing analysts' expectations of $2.01 billion. - The company's reported EPS for the quarter was $1.76, indicating a solid earnings performance.2. Market Reaction: - The stock price of RPM had risen by 2.8% on the day of the earnings release and had lost 8.2% so far in the year. - The positive earnings surprise likely led to investor confidence, resulting in the additional intraday surge.3. Analyst Expectations and Ratings: - Analysts had expected earnings of $1.59 per share, with a range from $1.49 to $1.65 per share. - The mean earnings estimate of analysts had risen by about 0.3% in the last three months, indicating growing optimism among analysts. - The average consensus recommendation for the commodity chemicals peer group is "buy," suggesting ongoing positive sentiment.4. Future Outlook: - RPM anticipates fiscal 2026 sales to rise by low- to mid-single digits, with adjusted EBIT growing by high-single to low-double digits. - The company's focus on systems and turnkey solutions for high-performance buildings, along with geographic growth led by Europe, supports the positive outlook.5. Investor Considerations: - Investors should consider the company's strong financial performance, positive growth outlook, and the potential for continued reinvestment in profitable initiatives. - The trend of increasing ROCE is a positive indicator, suggesting that RPM is a compounding machine with profitable initiatives.In conclusion, RPM International Inc.'s stock performance after a 10% intraday surge on July 24, 2025, was bolstered by strong financial results and a positive outlook for the future. The company's focus on growth areas and the trend of increasing returns on capital employed are encouraging signs for investors. However, it's important to monitor the company's performance against its growth targets and market conditions moving forward.

RPM’s Momentum Unlikely to Fizzle—Here’s How to Ride the Wave
RPM’s 10.5% surge is driven by robust earnings, strategic reorganization, and optimistic fiscal 2026 guidance. Technicals suggest a continuation of this momentum, with key resistance at $126.05 and the 52W high of $141.79 as critical targets. Investors should monitor the 200D MA ($120.51) and 30D support ($110.45) for signs of a pullback or breakout. Meanwhile, sector leader Owens Corning’s 0.17% rise underscores RPM’s unique strength. For traders, the $120–$125 call options offer the best risk/reward profile to capitalize on this rally. Watch for a break above $126.05 to confirm the trend’s sustainability.