Stock Analysis | PPG Industries Outlook - Mixed Signals in Technicals and Analysts' Ratings

1. Market Snapshot

Takeaway: PPG Industries is currently in a weak technical position with bearish signals outweighing bullish ones. Our internal diagnostic score for technicals is 1.38 (10 = best), suggesting investors should avoid the stock at this time.

2. News Highlights

Recent news impacting PPG Industries includes:

• Safex Chemicals Expands Manufacturing Footprint: Safex Chemicals announced a new state-of-the-art facility in Bharuch, Gujarat, to boost production and supply chain resilience. While this is positive for the broader chemical industry, it could increase competition for PPG Industries in the long run.
• US-China Trade Tensions Intensify: The U.S. announced new restrictions on shipments of chip design software and chemicals to China, which could affect global supply chains. PPG Industries, with a significant international presence, could face operational challenges if these policies escalate.
• Deloitte Report on U.S. Energy & Chemicals Industry Growth: Deloitte predicts a 4.1% workforce growth in the U.S. energy and chemicals sector by 2033, with an emphasis on AI and workforce reskilling. PPG Industries is likely to benefit from this growth trend if it aligns its strategy with these developments.

3. Analyst Views & Fundamentals

Analysts are divided in their views on PPG Industries. The simple average rating is 3.50, while the performance-weighted rating is 2.73. This reflects a lack of consensus among analysts.

Recent ratings include:

• Mizuho (John Roberts): Rated "Buy" on July 15, 2025. However, their historical performance is poor with a 33.3% win rate and an average return of -3.29%.
• RBC Capital (Arun Viswanathan): Rated "Neutral" on August 1, 2025. RBC has a strong historical performance with a 75.0% win rate and an average return of 2.25%.

These ratings are not aligned with the recent price trend, which is down by 0.04%. This suggests some analysts may be underestimating the current bearish momentum.

Key fundamental factors and their values (with internal diagnostic scores in parentheses):

• PE Ratio: 65.57 (2.00)
• Cash Flow from Operating Activities (per share YoY growth %): 25.06% (1.00)
• Cost of Sales Ratio: 58.05% (1.00)
• Equity Multiplier (DuPont %): 289.18% (3.00)
• Total Profit / EBIT: 97.26% (3.00)

4. Money-Flow Trends

Money flow for PPG Industries shows a positive overall trend with inflows from large and extra-large investors. Specifically:

• Small investors: Inflow ratio 49.52%, trend negative
• Medium investors: Inflow ratio 49.08%, trend negative
• Large investors: Inflow ratio 48.54%, trend negative
• Extra-large investors: Inflow ratio 52.93%, trend positive

The overall inflow ratio is 50.47%, indicating that while retail investors are cautious, institutional money is showing some confidence in the stock.

5. Key Technical Signals

Technical analysis of PPG Industries paints a bearish picture:

• Williams %R (WR Overbought): Score 1.76 (internal diagnostic score). This indicator suggests the stock is overbought and may correct downward.
• MACD Golden Cross: Score 1.00 (internal diagnostic score). A bearish signal suggesting a potential trend reversal or continuation of the downtrend.

Recent chart patterns include repeated instances of WR Overbought from August 13 to 22, 2025, indicating a lack of bullish momentum. The overall trend remains weak, with bearish signals clearly dominant.

6. Conclusion

Despite positive money flows from large institutional investors, PPG Industries is facing a weak technical environment with bearish indicators in play. With an internal technical score of 1.38 and a lack of analyst consensus, investors should be cautious.

Actionable takeaway: Consider avoiding new positions in PPG Industries for now. Monitor upcoming developments in the U.S. energy and chemicals sector for potential catalysts, and wait for a stronger technical setup before considering entry.