|Bid||468.87 x 800|
|Ask||530.70 x 800|
|Day's Range||522.50 - 532.02|
|52 Week Range||355.28 - 532.02|
|Beta (3Y Monthly)||1.28|
|PE Ratio (TTM)||42.62|
|Earnings Date||Oct 23, 2019 - Oct 28, 2019|
|Forward Dividend & Yield||4.52 (0.87%)|
|1y Target Est||513.23|
Moody's Investors Service ("Moody's") assigned Baa3 ratings to Sherwin-Williams Company (The)'s ("Sherwin-Williams") proposed senior notes. "Sherwin-Williams is taking advantage of favorable market conditions to extend debt maturities," said Ben Nelson, Moody's Vice President - Senior Credit Officer and lead analyst for The Sherwin-Williams Company. Sherwin-Williams' Baa3 rating balances a strong business profile compared to other rated chemical companies and meaningful deleveraging since the acquisition of Valspar Corporation (The) in June 2017 with credit metrics that are still somewhat soft for the rating category and a willingness to pursue shareholder-friendly activities as management-adjusted leverage falls towards 3.0x (Debt/EBITDA) despite observed weakness in key end markets and the macroeconomy.
CLEVELAND, Aug. 12, 2019 /PRNewswire/ -- The Sherwin-Williams Company (SHW) ("Sherwin-Williams") today announced that it is commencing cash tender offers (the "Tender Offers") to purchase up to $1.5 billion combined aggregate principal amount (the "Maximum Tender Amount") of its outstanding 2.250% Senior Notes due 2020 (the "2020 Notes") and 2.750% Senior Notes due 2022 (the "2022 Notes" and, together with the 2020 Notes, the "Notes") pursuant to the terms and conditions set forth in the Offer to Purchase, dated August 12, 2019 (the "Offer to Purchase"). Notes accepted for purchase on any Settlement Date (as defined in the Offer to Purchase) will be accepted in accordance with their Acceptance Priority Levels (with 1 being the higher Acceptance Priority Level) set forth in the table below and on the cover page of the Offer to Purchase, provided that Sherwin-Williams will only accept for purchase (a) no more than $1,000,000,000 aggregate principal amount of the 2020 Notes (the "2020 Series Cap"), (b) no more than $500,000,000 aggregate principal amount of the 2022 Notes (the "2022 Series Cap" and together with the 2020 Series Cap, the "Series Caps") and (c) an aggregate principal amount of Notes up to the Maximum Tender Amount.
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Bellicose words and hawkish trade policy have turned into a larger skirmish in the simmering trade war. US President Trump on Thursday tweeted that he would impose new tariffs on Chinese imports starting September 1. The tariffs, set at 10% on some $250 billion in Chinese products, will target consumer goods, including electronics. In response, China allowed the yuan to drop past 7 to the dollar – its weakest in over a decade – a reversal of the government’s usual policy of currency support. China’s government shrugged off Trump’s accusations of currency manipulation, and in today’s trading has set the yuan at a slightly stronger rate.Markets, of course, have reacted, with the Dow Jones losing 5.4% and the S&P 500 losing 5.6% between July 30 and August 5. Both indexes showed modest gains on August 6, and still show strong gains year-to-date.Here, we’ll look at four stocks well-positioned to weather trade-war induced volatility. All are buy-rated, all have recently beaten their earnings estimates, and top analysts have noted paths forward for each of them. And all four fit one of Warren Buffett’s favorite criteria for choosing stocks: “Only invest in simple businesses that you understand.” Coca-Cola Company (KO)We’ll start with the world’s most recognized soft drink, Coca-Cola. Coke is definitely a simple business, in the sense that Buffett meant; even though it markets more than 500 branded products, the company has kept its product line focused steadfastly on bottled beverages. By keeping strictly to a sector it knows and does well, Coke has built a powerful brand and a loyal customer base.On July 23, the company reported 63 cents EPS, beating the forecast by 1.6%. Reported revenues, $10 billion, were just above the expected $9.99 billion. KO shares broke above $54 after the earnings release, and still remains near that all-time high. Year-to-date, KO is up 10.4%.Writing after the earnings report, William Chappell of SunTrust Robinson noted the earnings beat and rising revenues, and said, “The company's strong organic sales trends will continue for the balance of the year based on its anticipated investments and momentum in its markets, with more benign FX conditions in 2020 also relieving some of the headwinds of 2019.” He boosted his price target to $60, to go along with his Buy rating. His target indicates confidence in a 14% upside for KO.RBC Capital’s Nik Modi also sees strength in KO, writing, “The company is executing well against its strategy to becoming a total beverage company—driving both organic revenue and earnings per growth.” Modi sees the company’s near- to mid-term earnings growth remaining in the mid- to high-single digit range. In line with this upbeat outlook, he sets a $60 target on the stock.Overall, Coke’s stock maintains a Moderate Buy rating, based on an even split of 6 buys and 6 holds over the past three months. The current share price is $52.27; as mentioned above, this is close to the stock’s all-time high. The average price target, $57.18, suggests an upside of 9.39% for KO. Johnson & Johnson (JNJ)The consumer health giant offers us an interesting study. It’s a market leader in home health products, and also manufactures a variety of prescription drugs. Both business segments are profitable and tend to outperform the market; yet JNJ is only up 1.33% year-to-date, and the stock has slipped 7% since mid-July. The company’s fortunes are balanced between last month’s strong second-quarter earnings and a series of legal actions that have investors worried.For Q2, JNJ reported a 4.8% earnings beat, with EPS of $2.58 per share against the forecast $2.46. This was a 42% year-over-year gain. Revenues were also beat expectations, by 1.3%, and came in at $20.56 billion for the quarter. That was the good news.The bad news – the legal worries – concerns a set of ongoing issues, on the company’s talcum powder and possible liability exposure to the opioid epidemic, that have been dogging JNJ since last year. Investors are concerned based on the size of potential judgements against the company. BMO analyst Joanne Wuensch addressed the legal cases in her review of the stock two months ago. She said, “Litigation is a common occurrence in the health care sector that takes significant time to resolve, and often headlines are worse than reality.” Believing that JNJ has plenty of underlying strength to fall back on, she gives the stock a $157 price target and a 20% upside.Five-star analyst Jayson Bedford, writing from Raymond James, agrees with Wuensch’s assessment of JNJ stock. He says, “There is still plenty of drama ahead for Johnson & Johnson investors in the near term, but the company has solid fundamentals and the stock has an attractive valuation.” While upbeat, Bedford’s price target is more cautious, at $146, but still implies an upside of 11.6%.While Johnson & Johnson shows the most near-term weakness of the stocks in this list, it also shows the highest longer-term potential. JNJ shares have a 15% upside, based on a share price of $130 and an average price target of $151. The moderate buy rating is based on 4 buys and 3 holds from the past three months. Sherwin-Williams Company (SHW)Best known for its line of paints, Sherwin-Williams is the leading provider of paints and coating for the industrial and construction sectors. The company pleased investors and analysts last month, when its Q2 EPS of $6.57 beat the forecast by 3.5%. The beat was especially welcome after SHW missed earnings in the previous quarter.Wall Street’s analysts were quick to pick up on SHW’s performance. Writing from RBC Capital, Arun Viswanathan said, “The quarter was driven by strong execution in its North America retail market and a favorable backlog of delayed projects. The company's comps growth of 4.3% topped our forecast of 3% thanks to the higher sales volume and an increase in selling prices.” Viswanathan increased his price target by 6.3%, to $550, indicating a 10% upside for SHW.Susquehanna analyst Don Carson looked at Sherwin-Williams’ forward potential, and wrote, “We have increased confidence in the outlook for strong earnings growth in 2020 given strong Paint Stores Group sales growth in the face of adverse weather which underscores the potential for further margin expansion from falling raw material costs.” Carson’s $580 price target suggests a 16% upside potential for the stock.SHW’s analyst consensus rating of Moderate Buy is based on 7 buys and 4 holds assigned in recent months. Shares are pricey, at $498, but the high share price means the modest dividend yield of 0.91% pays out $4.52 per share annualized. The average price target, $531, implies a 6.58% upside for this stock. Waste Management, Inc. (WM)Our last stock here is also probably the strongest on this list. Waste Management’s 30% year-to-date gain is more than double the S&P 500’s 15%. In addition, Waste Management has consistently beaten the quarterly earnings expectations, and its last report was no exception. The $1.11 EPS was 3.7% higher than the $1.07 forecast, and the $3.95 billion in quarterly revenue was significantly higher than the year-ago quarter’s $3.74 billion.Waste Management’s secret to consistent outperformance is in its name: the company is North America’s largest provider of garbage collection and recycling services. Like Johnson & Johnson, Waste Management leads in a business segment that will always have ready customers. It is a classic defensive stock.The markets top analysts were predictably upbeat after the earnings report. Two analysts – Patrick Brown, from Raymond James, and Derek Spronck, from RBC Capital – both issued increased price targets for WM. Brown raised his to $127, and Spronck set his at $126. At the same time, Scotiabank analyst Mark Neville opened coverage on the stock, with a Buy rating and an aggressive price target of $130. Neville’s target implies an upside potential of 12% for WM shares.The analyst consensus on WM is a Moderate Buy. The stock has received 4 buys and 2 holds in the past three months. Shares are selling for $116, so the $124 price target gives them an upside of 7.3%.
The stock market has been shaken in recent days by an escalation of the trade battle with China, as well as a Federal Reserve move to lower benchmark interest rates for the first time since 2008 - but not by as much as some on Wall Street hoped. But even after heavy selling, Standard & Poor's 500-stock index remains just a few percent off all-time highs.Is this the start of a long-awaited stock market correction? Possibly. But rather than trying to gauge exactly when a correction is coming or what will spark it, a better plan is to simply prepare. That is, you can shift the composition of your portfolio so it can better weather a storm - but still profit as long as the bull keeps running.A more defensive posture does have drawbacks; nothing is free. The biggest problem is being underweight the stocks that are still driving the market higher. But for investors who do think a correction is coming and don't want to play the losing game of trying to time the market, we've asked a group of investment managers and other experts which stocks they expect to hold up should the market pull back.Here are 13 of the best stocks to buy to ride out a stock market correction. Most of these revolve around the idea of investing in high-quality companies that have good cash flows and business health, boasting pricing power and stable customer demand. This includes consumer staples stocks that sell products and services that people cannot live without. A couple will help raise your exposure to gold, which is emerging from a multiyear slumber. SEE ALSO: The Berkshire Hathaway Portfolio: All 48 Buffett Stocks
President and COO of Sherwin-williams Co (30-Year Financial, Insider Trades) David B Sewell (insider trades) sold 4,709 shares of SHW on 07/24/2019 at an average price of $493.52 a share. Continue reading...
The Zacks Analyst Blog Highlights: Texas Instruments, Blackstone, Northrop, Capital One and Sherwin-Williams
(Bloomberg Opinion) -- As investors pore over every earnings report for the very latest read on the economy, Caterpillar Inc. provided fresh evidence that the slowdown in manufacturing is no blip. The maker of bulldozers and mining machinery said Wednesday that its 2019 earnings would fall on the low end of its guidance range, snapping a streak of quarterly boosts to its outlook. Caterpillar’s pain points were similar to those that have routinely popped up in industrial companies’ results so far this second quarter: rising manufacturing costs, moderating demand and weakening confidence in the prospects for a second-half rebound. After a bizarre Tuesday turn in trading, when industrial companies including Pentair Plc and Sherwin-Williams Co. got resoundingly rewarded for cuts to their sales guidance, the glum outlook from an economic bellwether like Caterpillar seems to have shaken the market out of its reverie. Shares of Caterpillar slumped about 5% in early trading.Caterpillar continues to expect a modest sales increase in 2019, but that assumes oil and gas markets recover toward the end of the year, and that dealers work through inventory buildups and are able to accept the price increases the company is banking on to offset increased costs. Those assumptions seem tenuous.Dealers’ inventories of machines and engines climbed by $500 million in the second quarter, compared with a $100 million rise in the year-earlier period. But Caterpillar’s backlog slumped by about $1.9 billion relative to the first quarter, implying a softer demand environment. Meanwhile, sales of oil and gas equipment in North America declined in the second quarter, in part because of weaker demand in the Permian Basin. Halliburton Co. earlier this week announced an 8% cut to its North American workforce and said it would park unused fracking equipment rather than chase after market share. The oilfield services provider echoed Schlumberger Ltd.’s expectations for further sluggishness in the region in the second half of the year, even as international markets deliver robust growth. It’s also worth noting that the competitive pricing pressure in Asia that so spooked Caterpillar investors in the first quarter isn’t fading away. Sales of construction products slumped 22% in the region in the second quarter.Caterpillar’s results came as IHS Markit’s euro-area manufacturing gauge signaled the steepest contraction in more than six years and Germany’s factory Purchasing Manager’s Index fell to the lowest level in seven years. A gauge of U.S. factories showed activity is hovering on the borderline between expansion and contraction in the lowest reading since 2009. The slowdown in this sector appears to be deepening and I remain skeptical that a quarter-point cut to interest rates by the Federal Reserve would be enough to motivate the kind of investment surge that could reverse that trend.Elsewhere in industrials, aerospace has remained a haven this earnings season, with strong organic sales growth in the Honeywell International Inc. and United Technologies Corp.’s units that sell engines and aircraft parts. But it’s worth noting that Boeing Co.’s backlog is shrinking. The planemaker also reported results on Wednesday, and said its commercial backlog included more than 5,500 airplanes valued at $390 billion, down from more than 5,600 planes valued at $399 billion at the end of the first quarter. That’s likely at least in part a reflection of the fact that the embattled 737 Max is now in the fifth month of a global grounding following two fatal crashes. But should aerospace start to wobble, then we’re really in trouble. To contact the author of this story: Brooke Sutherland at firstname.lastname@example.orgTo contact the editor responsible for this story: Beth Williams at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brooke Sutherland is a Bloomberg Opinion columnist covering deals and industrial companies. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Sherwin-Williams earnings for the company's second quarter of 2019 has SHW stock up on Tuesday.Source: Shutterstock The Sherwin-Williams (NYSE:SHW) earnings report starts off bad with revenue of $4.88 billion for the second quarter of the year. This does comes in above its revenue of $4.77 billion from the same time last year. However, it misses Wall Street's revenue estimate of $4.94 billion for the quarter, but couldn't stop SHW stock from soaring today.Despite the revenue miss, a strong earnings per share of $6.57 for the quarter is helping SHW stock today. This is up from the company's earnings per share of $5.73 from the second quarter of 2018. It also easily beats out analysts' earnings per share estimate of $6.37 for the period.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWhen it comes to net income for the second quarter of the year, Sherwin-Williams brought in $471.00 million. That's an increase over the company's net income of $403.60 million for the same period of the year prior. * 10 Stocks to Buy From This Superstar Fund "All three of our segments increased profit and margin year-over-year," John G. Morikis, Chairman and CEO of Sherwin-Williams, said in a statement. "In The Americas Group, we generated sales growth in all end markets in our North American paint stores, led by high single digit growth in residential repaint. We leveraged the sales growth to expand segment margin by 50 basis points to 22.2%."SHW stock was up 7% as of Tuesday afternoon. The stock is also up 15% since the start of the year. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy From This Superstar Fund * 7 Stocks to Buy This Summer Earnings Season * 7 Marijuana Penny Stocks to Consider for Those Who Can Handle Risk As of this writing, William White did not hold a position in any of the aforementioned securities.The post Sherwin-Williams Earnings: SHW Stock Soars Despite Revenue Miss appeared first on InvestorPlace.
(Bloomberg Opinion) -- Good news comes with baggage for industrial companies this earnings season. United Technologies Corp., Stanley Black & Decker Inc. and Sherwin-Williams Co. all reported better-than-expected second-quarter earnings per share on Tuesday, but each company also gave investors new data points to worry about.For United Technologies, it was the fact that its aerospace businesses seem to be the only thing driving its improved outlook for sales and earnings in 2019. New equipment orders dropped 12% at Carrier in the period and 6% at the Otis elevator division, echoing reports of damped enthusiasm from industrial distributor Fastenal Co. and indications of an overall stagnation in new U.S. factory orders in June from the Institute for Supply Management. Stanley and Sherwin-Williams both left their full-year adjusted profit guidance unchanged despite notable beats in the second quarter, suggesting a cautious outlook on the rest of the year. Indeed, Stanley modestly reduced its expectation for volume growth amid a weaker outlook for industrial and emerging markets. Sherwin-Williams now expects overall revenue to increase only as much as 4% in 2019, down from an April projection of as much as 7%. Both companies think they can make up ground via price increases, but such sales weakness is troubling because Stanley and Sherwin-Williams can also be good proxies for the housing market and consumer demand.Despite the mixed results, stocks of all three companies rose Tuesday. Sherwin-Williams hit a new high and was on track for its biggest gain since 2009, while Stanley saw its biggest intraday gain since December. This is partly a reflection of lowered expectations. Industrial companies within the S&P 500 command a price-earnings ratio of about 17.5, a 10% discount to the broader benchmark’s valuation of 19.5 times profit. The average discount over the past five years is closer to 4%. Stanley had been down nearly 2% in the year leading up to Tuesday’s earnings report, owing in part to margin pressure it flagged earlier in the year. United Technologies has missed out on a nearly 4% gain in the S&P 500 after announcing a merger with Raytheon Co. that’s roused pushback from activist investors Bill Ackman and Dan Loeb.Generally speaking, though, investors appear to be choosing to prioritize the good headlines over the bad. Pentair Plc rose as much as 5.1% on Tuesday, despite relying mostly on tax benefits to beat analysts' second-quarter earnings estimates and cutting its organic growth guidance for the year. The International Monetary Fund further reduced its global growth outlook on Tuesday, saying a projected pickup from 2019’s pace in 2020 is “precarious,” with the principal risk factors being the U.S.’s various trade battles and Brexit. But for now, industrial companies are drawing on every means they have to keep the boom going, whether that’s relying on the still-robust aerospace market, pushing through price increases and cost cuts, or simply wagering a Federal Reserve interest-rate cut will boost investment.The thing about price increases is they get much trickier to pass along if demand starts to wobble. Stanley is also feeling the pain from the U.S.-China trade war. It now expects a $390 million hit to 2019 earnings from tariffs, currency swings and rising commodity prices, up from $340 million previously. Come 2020, United Technologies’ Carrier and Otis units will be spun off as independent companies, freeing the company from any future underperformance. Currency swings wiped out the modest organic revenue gain at Carrier in the second quarter, leaving it with a 1% decline in overall sales for the first six months of the year, and United Technologies lowered its full-year sales and profit outlook for the division. The flip side of United Technologies’ breakup is that it will be more exposed to an eventual downturn in aerospace markets without those two divisions, something it hopes to offset by expanding its defense business through the Raytheon deal.This willingness to look past trouble spots will be put to the test later this week when Caterpillar Inc. and 3M Co. report.(Updates stock activity in the third and fourth paragraphs.)To contact the author of this story: Brooke Sutherland at firstname.lastname@example.orgTo contact the editor responsible for this story: Beth Williams at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brooke Sutherland is a Bloomberg Opinion columnist covering deals and industrial companies. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
The materials sector looks set to break out after earnings from Sherwin-Williams and Avery Dennison made the sector the best performer in the S&P 500 today.
Q2 results of Sherwin-Williams' (SHW) Americas Group unit benefit from higher paint sales volume across all end markets in North American stores along with higher selling prices.
Sherwin-Williams (SHW) delivered earnings and revenue surprises of 3.47% and -0.95%, respectively, for the quarter ended June 2019. Do the numbers hold clues to what lies ahead for the stock?
CLEVELAND , July 23, 2019 /PRNewswire/ -- Consolidated net sales increased 2.2% in the quarter to $4.88 billion Net sales from stores in U.S. and Canada open more than twelve calendar months increased ...
Nineteen years after Santa Clara County filed suit against a group of paint companies over the health effects of lead in their products, those companies have agreed to pay $305 million to settle the suit. The companies, which include The Sherwin-Williams Co., ConAgra Grocery Products Company and NL Industries Inc., settled without admitting wrongdoing. The lawsuit, in which the county was joined by Alameda, Los Angeles, Monterey, San Mateo, Solano and Ventura counties as well as San Francisco, Oakland and San Diego, sought damages to treat people — especially children — suffering from exposure to lead paint used in post-World War II housing construction prior to the federal government’s ban on lead in paint in 1978.