Summary
The news coming from PPG in recent months has been less than positive.
PPG released lower earnings guidance for Q3 and Q4 on October 8th (just before the recent market pullback).
PPG’s ~18 forward PE (based on YTD results and guidance for the remainder of this current fiscal year) is well below its 5-year average PE of ~26.5.
PPG’s low current valuation makes it a tempting investment, but I have decided to pass on initiating a position and to wait for higher quality companies on my ‘watchlist’ to become more attractively valued.
Introduction
In my recent ‘Embrace Market Pullbacks’, I suggested investors avoid panicking when markets encounter ‘speed bumps’ and to view pullbacks as opportunities to either add to existing positions or to initiate positions at more favorable valuations. Case in point…
... PPG Industries, Inc. (NYSE: PPG) and The Sherwin-Williams Company (NYSE: SHW).
I gave each company a cursory review a few months ago and found both to be somewhat expensive for my liking. I didn’t bother writing about either company and simply moved on, although I did diarize to analyze PPG and SHW subsequent to the release of their Q3 results (October 18th and October 25th, respectively).
