Do You Believe in the Growth Potential of PPG Industries (PPG)?

Pzena Investment Management recently released its third-quarter 2025 commentary for “Pzena Focused Value Strategy.” A copy of the letter can be downloaded here. Driven by optimism about AI and a September rate cut, US broad-based indexes surged in the third quarter. The technology sector was the strongest performer, with growth outpacing value. The Pzena Focused Value strategy gained but underperformed the Russell 1000 Value Index, returning 1.1% gross and 0.9% net vs. 5.3% for the index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Pzena Focused Value Strategy 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 1.99%, and its shares lost 18.89% of their value over the last 52 weeks. On December 09, 2025, PPG Industries, Inc. (NYSE:PPG) stock closed at $99.43 per share, with a market capitalization of $22.441 billion.

Pzena Focused Value Strategy stated the following regarding PPG Industries, Inc. (NYSE:PPG) in its third quarter 2025 investor letter:

"During the quarter, we initiated a new position in PPG Industries, Inc. (NYSE:PPG), a leading coatings provider. PPG boasts enviable franchises across multiple coatings markets and has generated attractive returns on capital historically. Shares are currently trading at a discounted valuation due to concerns around tepid organic growth relative to peers. We see these concerns as overly discounted in the valuation and expect growth to improve over time as some key end markets recover from cyclical pressure."

PPG Industries, Inc. (NYSE:PPG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held PPG Industries, Inc. (NYSE:PPG) at the end of the third quarter, which was 39 in the previous quarter. 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 high-quality dividend stocks to invest in. In addition, please check out our hedge fund investor letters Q3 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.