Based in Cleveland, Ohio, The Sherwin-Williams Company (SHW) engages in the manufacturing and sales of paints, coatings, and related products. Valued at a market cap of $91.30 billion, the company sells its products through various brands, including Dutch Boy, Minwax, and Krylon.
Companies valued at $10 billion or more are generally tagged as “large-cap” stocks, and Sherwin-Williams fits this criterion perfectly. The company is a global leader in paints and coatings and markets its products in over 120 countries. It is renowned for its resin flooring.
Despite a 2.7% decline from its 52-week high of $371.19 reached on Sep. 3, shares of SHW company have gained 18.8% over the past three months, surpassing the Materials Select Sector SPDR Fund’s (XLB) marginal decline over the same time frame.
In the long term, SHW stock is up 15.8% on a YTD basis, outperforming the XLB’s 5.3% gains. Moreover, shares of SHW have rallied 34.2% over the past 52 weeks, surpassing XLB’s 9.8% return over the same time frame.
Since early July, SHW has been trading above its 200-day and 50-day moving averages, indicating a bullish trend.
Despite higher interest rates affecting home constructions and renovations, SHW has outperformed the broader sector. This can be attributed to increased consumer demand for smaller home improvement projects such as painting and a rise in demand from new residential customers.
Moreover, the stock gained 6.9% following its Q2 earnings release on Jul. 23, despite its revenue of $6.27 billion missing Wall Street estimates of $6.35 billion. The surge in price was due to its adjusted earnings of $3.70 per share, which beat the estimate of $3.51 per share. The company’s raised full-year EPS guidance further boosted investor confidence.
Furthermore, SHW has outpaced its rival PPG Industries, Inc.’s (PPG) 16.6% decline on a YTD basis and a 9% drop over the past 52 weeks. Since SHW has outperformed the broader market, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 24 analysts in coverage, and the mean price target of $370.22 suggests a 2.7% premium to its current levels.
On the date of publication, Rashmi Kumari 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.
