PPG, Sherwin-Williams plunge 5% as RPM results disappoint

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Paint makers PPG Industries (NYSE:PPG) and Sherwin-Williams (NYSE:SHW) rank among the biggest losers on the S&P 500 Thursday, -5.5% and -5% respectively, after RPM International (NYSE:RPM) reported lower than expected FQ2 revenues and guidance for slower growth.

Other paint and coatings companies also are falling sharply, including H.B. Fuller (FUL) -4.6%, Axalta Coating Systems (AXTA) -3.7%, Chemours (CC) -2.6%.

RPM International (RPM) -12.5% for its biggest intraday decline in nearly three years even as Q2 net sales rose 9.3% Y/Y to a record $1.79B, as it also forecast current quarter sales will rise by a low- to mid-single-digit percentage from a year ago, which would be a lower growth rate than in the previous five quarters.

RPM's (RPM) gross margins have taken a hit over the past two years, and DCF and valuation metrics indicate the stock is overvalued, Prasanna Rajagopal writes in an analysis published recently on Seeking Alpha.