Paint and coatings stocks aren’t something the average investor looks at, but they’re important barometers of both cost inflation and the business cycle. Last week, we watched as PPG Industries (PPG) stole the market's attention, gapping down nearly 10%, citing commodity price increases and FX headwinds as negative impacts on the core business. If these were one-off items, I’d have far less concern, but these are structural trends that will persist at least in the short-term. Value investors are supporting the name on the dip, but I want to exercise caution before investors rush to buy as I don't believe it's cheap enough for the risks at hand.

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