The Sherwin-Williams Company (SHW), with a market cap of $76.1 billion, is a Fortune 500 company that manufactures and sells paints, coatings, and related products under brands like Dutch Boy, Minwax, and Krylon. Headquartered in Cleveland, it operates in three segments: The Americas Group, The Consumer Brands Group, and The Performance Coatings Group. The company’s offerings cater to industrial, architectural, protective, marine, packaging, automotive, and wood finishing markets.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and Sherwin-Williams fits right into that category. Its market cap exceeds this threshold, reflecting its substantial size, stability, and influence in the basic material sector. Its brand strength is exemplified by a vast network of specialty paint stores, providing direct consumer access and solid revenue streams.
Despite the positive, Sherwin-Williams Company is currently trading 13.8% below its 52-week high of $348.37, touched on March 28. However, its shares have dipped 10.5% over the past three months, trailing behind the Dow Jones Industrial Average Index’s ($DOWI) marginal gain over the same time frame.
Longer term, SHW stock is down 3.8% on a YTD basis, but the stock has soared 21.1% over the past 52 weeks, compared to DOWI’s 3% return in 2024 and 13.2% gains over the past year.
Sherwin-Williams’ stock has traded above its 200-day moving average since early November last year, despite some recent fluctuations, indicating an uptrend.
Sherwin-Williams' underperformance this year can be attributed to its delayed capex projects affecting property maintenance sales, soft North American DIY paint demand, and variable demand across different businesses and regions.
Moreover, on April 23, the company’s stock fell 2.2% following its Q1 earnings release, as it missed both its Q1 bottom-line and top-line estimates. Sherwin-Williams Company reported adjusted EPS of $2.17, falling short of expectations by 3.6%. The company reported a revenue of $5.4 billion, also missing forecasts of $5.5 billion.
To emphasize Sherwin-Williams’ price performance, the stock has slightly outpaced those of its competitors, like PPG Industries, Inc. (PPG). PPG stock has plunged 10.6% over the past 52 weeks and dropped 14.5% in 2024.
Further, analysts are moderately bullish about the stock's prospects. The stock has a consensus rating of “Moderate Buy” from 23 analysts covering it, and the stock’s mean price target of $345.70 reflects a modest upside potential of 15.2% from the current price level.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
