According to Paint & Coatings Industry, the top three paint manufacturers are Akzo Nobel (AKZOY), PPG Industries (PPG) and Sherwin-Williams (SHW). These stocks have all done well over the last year despite the slowing demand in two of the largest end-markets for paint: housing and autos.
Pricing power for paint, as indicated by the change in PPI for the industry, is weakening. Estimates have been rising for PPG, which reports later this week. It will be worth listening to the conference call to see if they mention the pricing environment and its potential impact on earnings.
