Why Shares of Axalta Coating Crashed in February
Shares in paintings and coatings company Axalta Coating Systems (NYSE: AXTA) fell 13.5% in February, according to data provided by S&P Global Market Intelligence. Axalta's share price was already weak in 2020 due to concerns over its exposure to the industrial economy (specifically the auto industry). But the move down in February is correlated with the market fallout due to fears over the economic impact, or even a recession, caused by the COVID-19 coronavirus.
Image source: Getty Images.
As the chart below shows, all the leading paintings and coatings companies -- like Sherwin-Wiiliams, PPG Industries, and RPM International -- have taken a major hit as the market has declined. The reason: Their end-market revenue is tied to general economic activity -- although each company has its own specific end-market exposures.
Source Fool.com
