RPM stock prediction as shares pull back from record highs ahead of earnings

By:
on Jan 4, 2022
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  • RPM International shares pulled back 2.62% on Monday.
  • The company is expected to announce its most recent quarterly results on Wednesday.
  • Analysts expect its FQ2 earnings per share to decline by 18%, with revenue rising by 4%.

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On Monday, RPM International Inc. (NYSE:RPM) shares declined by 2.62% ahead of its fiscal second-quarter results. The company is expected to announce its most recent quarterly results on Wednesday.

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Analysts are predicting RPM’s earnings per share to decline by about 18% from the same period a year ago to $0.86, with revenue forecasted to grow by 4%. The company’s bottom line outperformed analyst expectations in each of the last 11 quarters, its last EPS miss coming three years ago, this quarter.

The stock surged by nearly 30% in the last three months of 2021, setting record highs.

RPM International is a multinational speciality chemicals manufacturer and marketer of building materials, sealants and coatings.

Is there room left to run?

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From an investment perspective, RPM International shares trade at reasonable trailing 12-month and forward P/E ratios of 28.03 and 21.70, respectively. Therefore, the stock could still be an interesting option for value investors despite its year-end rally.

In addition, analysts expect its earnings to grow by 65% this year and by a further 21% next year, making it a compelling option for growth investors. 

Source – TradingView

Technically, RPM international shares seem to be trading within an ascending channel formation in the intraday chart. However, the stock recently pulled back to recover from the overbought conditions of the 14-day RSI.

Therefore, investors could target potential rebound profits at about $101.48, or higher at $104.67, while $95.38 and $92.45 are crucial support zones.

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