With a market cap of $29.5 billion, PPG Industries, Inc. (PPG) is a global manufacturer and distributor of paints, coatings, and specialty materials. It operates through three segments: Global Architectural Coatings; Performance Coatings; and Industrial Coatings, supplying products and services to consumers, contractors, and industrial customers worldwide. Shares of the Pittsburgh, Pennsylvania-based company have outperformed the broader market over the past 52 weeks. PPG stock has increased 14.6% over t ...

Core Viewpoint - PPG Industries Inc. is currently considered one of the most undervalued quality stocks, with analysts raising price targets despite a Q4 2025 earnings miss, indicating optimism about the company's future performance [1][2][3]. Analyst Ratings and Price Targets - Bernstein increased its price target for PPG Industries to $130 from $123 while maintaining an Outperform rating, noting that the Q4 2025 results were well received despite missing EPS expectations [1]. - UBS analyst Joshua Spector raised the price target to $122 from $110, keeping a Neutral rating on the shares [2]. - RBC Capital analyst Arun Viswanathan raised the price target to $115 from $109 but maintained a Sector Perform rating, citing a Q4 2025 earnings miss and a disappointing 2026 outlook [3]. Segment Performance and Market Dynamics - Positive drivers for PPG Industries include strong performance in the Aerospace and Protective & Marine segments, along with $100 million in Industrial market share gains and effective cost-reduction efforts [3]. - Concerns were raised regarding the Refinish segment destocking, rising costs, and broader Industrial challenges, which may offset the benefits of low-single-digit price and volume growth [3]. Company Overview - PPG Industries manufactures and distributes paints, coatings, and specialty materials, operating through three segments: Global Architectural Coatings, Performance Coatings, and Industrial Coatings [4].

Financial Data and Key Metrics Changes - Q4 2025 revenue was $1.2 billion, with adjusted EBITDA of $232 million, exceeding guidance [4][13] - Full year 2025 revenue totaled $4.6 billion, up 5% year-over-year, driven by 14% growth in aerospace and defense [4][13] - Adjusted EBITDA for 2025 exceeded $859 million, up 18% year-over-year, with adjusted EPS at $3.24, a 32% increase from 2024 [4][13] - Adjusted free cash flow totaled $380 million, up 53% from 2024, with $470 million returned to shareholders [4][14] Business Line Data and Key Metrics Changes - Aerospace and defense revenue represented 68% of total revenue in 2025, up from 62% in 2024, with engine sales growing 21% [8][13] - Specialty energy business delivered 9% year-over-year growth in Q4, supported by multi-year customer commitments [8][9] - Full-year adjusted EBITDA margins increased to 18.7%, up from 16.7% in 2024, with HPMC margins at 23.6% and AA&S margins at 16.3% [15] Market Data and Key Metrics Changes - Strong demand in aerospace and defense markets, with commercial aerospace demand accelerating [5][7] - Defense revenue grew 14% year-over-year, with missile sales up 127% due to increased government spending [8][9] - Projected double-digit growth in jet engines and continued strength in defense and airframe demand [8][22] Company Strategy and Development Direction - Company is focused on proprietary products and long-term agreements to expand market share and improve pricing [9][10] - Capital discipline and operational execution are central to the strategy, with a focus on unlocking capacity through productivity improvements [10][11] - Investments in differentiated nickel capabilities and modernization of melting systems are planned to support growth [11][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in customer demand and operational execution, guiding for $1 billion of adjusted EBITDA in 2026, a 16% increase year-over-year [5][18] - The company anticipates continued margin expansion, with full-year consolidated margins projected to be around 20% [23] - Management highlighted the importance of long-term contracts and differentiated materials in securing premium pricing and expanding market share [25] Other Important Information - The company plans to invest $220-$240 million in capital expenditures for 2026, focusing on proprietary engine alloys [10][19] - The backlog remains just under one year of revenue, with lead times for specialized materials extending [70] Q&A Session Summary Question: Expansion of capacity with customer support - Management explained that customer agreements ensure access to differentiated materials, allowing flexibility in capacity allocation [28][29] Question: Update on airframe growth and inventory situation - Management noted that airframe inventories are normalizing, with modest improvements in order rates expected in the second half of 2026 [31][62] Question: Breakdown of defense revenue growth drivers - Management provided insights into defense revenue, indicating naval and missile segments as key growth areas, with significant contracts in place [36][38] Question: 2027 guidance update - Management expressed confidence in the 2027 guidance, indicating a bias towards the top end of EBITDA margin expectations [42][44] Question: Pricing outlook for exotic alloys - Management indicated that pricing assumptions for 2026 are based on current market conditions, with significant movements in specialty alloys considered [55][56] Question: Staffing plans for 2026 - Management stated that headcount will remain stable, with some open positions to support new capacity, leveraging the current experienced workforce [90] Question: Growth in isothermal forgings - Management confirmed that isothermal forgings are in high demand, with lead times extending and continued growth expected [92][95]

Company Overview - Dow Inc. has a market cap of $16.6 billion and operates as a global materials science company, providing innovative solutions across packaging, infrastructure, mobility, and consumer markets [1] - The company operates through three segments: Packaging & Specialty Plastics, Industrial Intermediates & Infrastructure, and Performance Materials & Coatings, offering a diverse portfolio of plastics, chemicals, coatings, and specialty materials [1] Financial Performance - Dow is set to announce its fiscal Q4 2025 results on January 29, with analysts expecting an adjusted loss of $0.45 per share [2] - For fiscal 2025, analysts project an adjusted loss of $1.03 per share, a significant decline from an adjusted EPS of $1.71 in fiscal 2024, but a rebound is anticipated in fiscal 2026 with an estimated 81.6% year-over-year improvement, narrowing the adjusted loss to $0.19 per share [3] Stock Performance - Over the past 52 weeks, Dow's stock has dropped 41.7%, underperforming the S&P 500 Index, which increased by 16.9%, and the State Street Materials Select Sector SPDR ETF, which rose by 7.7% [4] - Despite reporting weaker-than-expected Q3 2025 revenue of $9.97 billion, Dow's shares surged nearly 13% on October 23 due to a smaller-than-expected adjusted loss of $0.19 per share, attributed to strong cost discipline and higher volumes from new assets [5] Analyst Ratings - The consensus view among analysts on Dow stock is cautious, with an overall "Hold" rating; of the 20 analysts covering the stock, two recommend a "Strong Buy," 17 give a "Hold," and one has a "Strong Sell" [6] - The average analyst price target for Dow is $26.83, indicating a potential upside of 14.9% from current levels [6]

Core Viewpoint - PPG Industries, Inc. is expected to report a slight decline in earnings per share (EPS) for the fiscal fourth quarter of 2025, with analysts projecting a profit of $1.60 per share, down from $1.61 in the same quarter last year [2]. Financial Performance - For the full fiscal year, analysts anticipate PPG to report an EPS of $7.66, which represents a 2.7% decrease from $7.87 in fiscal 2024. However, EPS is expected to rebound with a 5.6% increase to $8.09 in fiscal 2026 [3]. - In Q3, PPG reported an adjusted EPS of $2.13, exceeding Wall Street expectations of $2.09, with revenue reaching $4.1 billion, surpassing forecasts of $4 billion. The company expects full-year adjusted EPS to be in the range of $7.60 to $7.70 [5]. Stock Performance - PPG's stock has underperformed compared to the S&P 500 Index, which gained 14.8% over the past 52 weeks, while PPG shares declined by 14%. It also lagged behind the Materials Select Sector SPDR Fund, which returned 8% during the same period [4]. - Analysts maintain a moderately bullish outlook on PPG stock, with a "Moderate Buy" rating. Among 24 analysts, 10 recommend a "Strong Buy," 13 suggest a "Hold," and one advises a "Strong Sell." The average price target for PPG is $120.60, indicating a potential upside of 15.6% from current levels [6].

Group 1 - Corning Incorporated (NYSE:GLW) is recognized for its significant role in the data center business, particularly in displacing copper wiring with optical fiber technology [1][2] - The company is noted as a top performer in Q3, with Jim Cramer highlighting it as a key stock for investment consideration [2] - Corning specializes in developing optical fiber, cables, and related hardware for telecommunications, as well as producing glass substrates for displays in various devices [2] Group 2 - Jim Cramer emphasizes starting small with investments in Corning, anticipating a potential rotation in the market due to upcoming news from OpenAI [1] - The CEO of Corning, Wendell Weeks, has been actively involved in the company's operations, particularly at their facility in Harrodsburg, Kentucky, which produces cover glass for iPhones and Apple Watches [2]

Core Insights - Pzena Investment Management's third-quarter 2025 commentary indicates a strong performance in US broad-based indexes driven by optimism about AI and a September rate cut, with the technology sector outperforming value stocks [1] - The Pzena Focused Value strategy returned 1.1% gross and 0.9% net, underperforming the Russell 1000 Value Index which returned 5.3% [1] Company Overview: PPG Industries, Inc. - PPG Industries, Inc. is involved in the manufacturing and distribution of paints, coatings, and specialty materials, with a market capitalization of $22.441 billion as of December 09, 2025 [2] - The stock of PPG Industries, Inc. experienced a one-month return of 1.99% but has lost 18.89% over the last 52 weeks, closing at $99.43 per share [2] Investment Positioning - Pzena Focused Value Strategy initiated a new position in PPG Industries, citing its strong market presence and historical returns on capital, despite current concerns about organic growth [3] - The company is viewed as undervalued due to market apprehensions, with expectations for growth to improve as key end markets recover [3] Hedge Fund Interest - PPG Industries, Inc. was held by 34 hedge fund portfolios at the end of the third quarter, a decrease from 39 in the previous quarter, indicating a decline in popularity among hedge funds [4] - While PPG is recognized for its potential, some analysts suggest that certain AI stocks may offer better upside potential with less downside risk [4]

Group 1: Company Overview - PPG Industries, Inc. is a leading supplier of paints, coatings, and specialty materials, serving various industries including construction, consumer goods, industrial manufacturing, transportation, and aftermarket services [2] - The company has transitioned to operate almost entirely as a coatings-focused business, moving away from traditional glass and chemical operations, resulting in a streamlined coatings portfolio with stronger margins [4] Group 2: Strategic Initiatives - PPG Industries has invested billions in acquisitions to fuel its growth, maintaining a balanced capital allocation approach while being open to sizable acquisitions when opportunities arise [3] - The company has devoted a significant portion of its cash toward share repurchases, contributing meaningfully to its earnings-per-share growth over time [3] Group 3: Dividend Policy - PPG Industries has maintained its dividend policy over the years, increasing dividends for 54 consecutive years, making it one of the best dividend aristocrat stocks [5] - As of October 12, the company offers a quarterly dividend of $0.87 per share, resulting in a dividend yield of 2.88% [5]