What Makes PPG Industries (PPG) an Attractive Investment Opportunity?

Cullen Capital Management, LLC, operating under the name Schafer Cullen Capital Management, Inc. (SCCM), has released its “SCCM Enhanced Equity Income Fund” second-quarter investor letter. A copy of the letter can be downloaded here. US equities surged in the second quarter, with the S&P 500 gaining 10.9% while the Russell 1000 Value was up 3.8%. The composite underperformed both of its benchmarks in the second quarter, returning -1.2% (net) compared to a 1.9% return by the S&P 500 Buy-Write Index (BXM) and a 3.7% return by the SPDR Bloomberg High Yield Bond ETF (JNK). In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its second-quarter 2025 investor letter, SCCM Enhanced Equity Income Fund highlighted stocks such as PPG Industries, Inc. (NYSE:PPG). PPG Industries, Inc. (NYSE:PPG) engages in the manufacturing and distribution of paints, coatings, and specialty materials. The one-month return of PPG Industries, Inc. (NYSE:PPG) was 6.50%, and its shares gained 14.26% of their value over the last 52 weeks. On August 29, 2025, PPG Industries, Inc. (NYSE:PPG) stock closed at $111.23 per share, with a market capitalization of $25.105 billion.

SCCM Enhanced Equity Income Fund stated the following regarding PPG Industries, Inc. (NYSE:PPG) in its second quarter 2025 investor letter:

"PPG Industries, Inc. (NYSE:PPG) – Shares of PPG were purchased in the quarter. PPG is a leading global manufacturer of paints, coatings, and specialty materials serving diverse end markets, including aerospace, automotive, industrial, packaging, and construction. PPG represents an attractive investment opportunity due to its diversified revenue streams, strong innovation pipeline, and potential for earnings recovery. The company’s focus on value-enhancing acquisitions, disciplined cost management, and exposure to high growth end markets positions it well for long-term success. While macroeconomic headwinds persist, PPG’s pricing power, cost control measures, and aerospace/industrial recovery provide earnings support."

PPG Industries, Inc. (NYSE:PPG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 39 hedge fund portfolios held PPG Industries, Inc. (NYSE:PPG) at the end of the second quarter, which was 38 in the previous quarter. In the second quarter of 2025, PPG Industries, Inc.'s (NYSE:PPG) generated net sales of $4.2 billion with an increase in organic sales of 2%. While we acknowledge the potential of PPG Industries, Inc. (NYSE:PPG) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered PPG Industries, Inc. (NYSE:PPG) and shared the list of best dividend stocks from the materials sector. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.