Sherwin-Williams had its Relative Strength (RS) Rating upgraded from 78 to 83 Tuesday.
IBD's unique RS Rating identifies market leadership by showing how a stock's price movement over the last 52 weeks compares to that of other stocks on the major indexes.
Decades of market research shows that the stocks that go on to make the biggest gains typically have an RS Rating north of 80 as they begin their biggest price moves.
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Sherwin-Williams is now considered extended and out of buy range after clearing a 348.37 buy point in a first-stage cup without handle. See if the stock forms a new pattern or follow-on buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week line.
Earnings-per-share growth dropped in the company's latest report from 12% to 5%, but the top line rose from 0% to 1%.
The company holds the No. 2 rank among its peers in the Chemicals-Paints industry group. Axalta Coating Systems is the top-ranked stock within the group.
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