Are You a Value Investor? This 1 Stock Could Be the Perfect Pick
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.
Why Investors Should Pay Attention to This Value Stock
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.
Sherwin-Williams (SHW)
Founded in 1866 and headquartered in Cleveland, OH, The Sherwin-Williams Company is into manufacturing and sales of paints, coatings and related products, primarily in the North and South America. It also has operations in the Caribbean region, Europe and Asia. Sherwin-Williams is one of the biggest paint companies in the United States and in the world. Its well-known brands include Dutch Boy, Minwax and Krylon. The company, on Jun 1, 2017, completed the purchase of rival paints maker Valspar in an all-cash transaction, creating a premier global paints and coatings company.
SHW is a Zacks Rank #2 (Buy) stock, with a Value Style Score of B and VGM Score of A. Shares are currently trading at a forward P/E of 25.8X for the current fiscal year compared to the Paints and Related Products industry's P/E of 22.7X. Additionally, SHW has a PEG Ratio of 2.1 and a Price/Cash Flow ratio of 22.7X. Value investors should also note SHW's Price/Sales ratio of 2.8X.
A company's earnings performance is important for value investors as well. For fiscal 2023, two analysts revised their earnings estimate higher in the last 60 days for SHW, while the Zacks Consensus Estimate has increased $0.02 to $9.80 per share. SHW also holds an average earnings surprise of 11%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding SHW to their portfolios.
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The Sherwin-Williams Company (SHW) : Free Stock Analysis Report
