The Sherwin-Williams Company (SHW), headquartered in Cleveland, Ohio, is a global leader in the coatings and paint industry, delivering innovative and high-quality solutions to customers worldwide. With a market cap of $97 billion, Sherwin-Williams is pivotal in advancing eco-friendly technologies and empowering communities and businesses to enhance their environments while reducing their ecological footprint.
Companies with a market value of $10 billion or more are classified as “large-cap stocks,” and the Sherwin-Williams Company comfortably fits into this category. This distinction underscores its position as a dominant force in the coatings and paint industry, reflecting its substantial size, influence, and leadership.
Despite a 3.8% decline from its 52-week high of $400.42 reached on Nov. 27, SHW stock has gained 7% over the past three months, surpassing the Materials Select Sector SPDR Fund’s (XLB) 1.4% gain over the same time frame.
SHW has delivered a strong YTD gain of 23.5%, outperforming XLB's 7.9% return. Over the past 52 weeks, SHW's 36.1% gains have notably exceeded XLB's 13.6% surge.
SHW has maintained a bullish trend, consistently trading above its 50-day moving average since late November and staying above its 200-day moving average since early July.
Shares of Sherwin-Williams rose over 4% after S&P Dow Jones Indices announced that the stock would replace Dow Inc. (DOW) in the Dow Jones Industrial Average, effective Nov. 8.
On Oct. 22, Sherwin-Williams reported its Q3 earnings, and the stock dipped 5.3%. The company posted quarterly revenue of $6.16 billion, meeting Wall Street expectations but remaining flat year-over-year. Adjusted EPS fell short of consensus estimates by 4.8%, coming in at $3.37. Similarly, EBITDA of $1.28 billion missed expectations by 6.1%.
SHW has outpaced its rival PPG Industries, Inc.’s (PPG) 16.1% decline on a YTD basis and a 12% drop over the past 52 weeks.
Since SHW has outperformed the broader market, analysts remain moderately optimistic about its prospects. SHW has a consensus rating of “Moderate Buy” from the 24 analysts covering the stock and has a mean price target of $394.45, suggesting a potential upside of 2.4% from its current price.
