U.S. markets closed
  • S&P 500

    -10.29 (-0.30%)
  • Dow 30

    -222.19 (-0.80%)
  • Nasdaq

    +72.41 (+0.64%)
  • Russell 2000

    -14.50 (-0.90%)
  • Crude Oil

    -0.64 (-1.62%)
  • Gold

    -1.90 (-0.10%)
  • Silver

    -0.10 (-0.43%)

    -0.0024 (-0.20%)
  • 10-Yr Bond

    -0.0230 (-2.87%)

    +0.0022 (+0.17%)

    -0.3680 (-0.35%)

    +40.46 (+0.30%)
  • CMC Crypto 200

    +9.21 (+3.53%)
  • FTSE 100

    -63.02 (-1.09%)
  • Nikkei 225

    -8.54 (-0.04%)

Sherwin-Williams (SHW) Hits 52-Week High: What's Driving It?

Zacks Equity Research

Shares of The Sherwin-Williams Company SHW scaled a fresh 52-week high of $598.25 on Jan 21, before closing the session at $593.06.

The company has a market cap of around $54.7 billion. Average volume of shares traded in the past three months was around 480.9K. The company has an expected long-term earnings per share (EPS) growth rate of 11.9%.

The stock has surged 50.8% in the past year compared with the industry’s 48.9% rally.

What’s Driving Sherwin-Williams?

Upbeat view, strong demand in domestic market and synergies of Valspar acquisition are major factors driving the company.

In October 2019, Sherwin-Williams stated that it expects low single digit percentage increase in net sales for 2019 on a year-over-year basis. The company expects EPS in the range of $17.07-$17.47 for 2019 compared with $11.67 in 2018. It also raised its adjusted EPS guidance for 2019 to the range of $20.90-$21.30.

Sherwin-Williams is seeing strong demand in its domestic end-use markets and remains committed to retail operation expansion. It is focused on capturing a larger share of its end-markets.

The company is also benefiting from consistent strength in architectural paint markets in North America. Its third-quarter sales were driven by increased paint sales volume in North American stores and higher selling prices, which more than offset weak demand across certain end-markets outside the United States.

Moreover, the company is gaining from synergies of the Valspar acquisition. The company expects to end 2019 at annual run rate synergies of around $415 million.

The company’s cost-control initiatives, working capital reductions, supply chain optimization and productivity improvement are also supporting its margins.

The Sherwin-Williams Company Price and Consensus


The Sherwin-Williams Company Price and Consensus
The Sherwin-Williams Company Price and Consensus

The Sherwin-Williams Company price-consensus-chart | The Sherwin-Williams Company Quote


Zacks Rank & Key Picks

Sherwin-Williams currently carries a Zacks Rank #3 (Hold).

Few better-ranked stocks in the basic materials space are Daqo New Energy Corp DQ, Royal Gold, Inc RGLD and Bunge Limited BG, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Daqo New Energy has projected earnings growth rate of 326.3% for 2020. The company’s shares have surged 77.5% in the past year.

Royal Gold has an estimated earnings growth rate of 83.5% for fiscal 2020. Its shares have returned 39.6% in the past year.    

Bunge has an expected earnings growth rate of 30.7% for 2020. The company’s shares have gained 7.1% in the past year.

Just Released: Zacks’ 7 Best Stocks for Today

Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.6% per year.

These 7 were selected because of their superior potential for immediate breakout.

See these time-sensitive tickers now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
DAQO New Energy Corp. (DQ) : Free Stock Analysis Report
Royal Gold, Inc. (RGLD) : Free Stock Analysis Report
The Sherwin-Williams Company (SHW) : Free Stock Analysis Report
Bunge Limited (BG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research