Sherwin-Williams Strikes New 52-Week High at $256.16 - Analyst Blog
Shares of The Sherwin-Williams Company (SHW) touched a new 52-week high of $256.16 on Dec 11, 2014, before eventually closing the day lower at $254.21.
The paint giant, with a market cap of roughly $24.4 billion, has seen its shares rise around 39% over the past one year. Its year-to-date return is roughly 40%, much higher than the S&P 500’s total return of 12.3%. Average volume of shares traded over the last three months is roughly 615.2K. The company’s long-term projected EPS growth is around 13.9%.
What’s Driving SHW Up?
Sherwin-Williams, which is among the leading paint companies along with PPG Industries Inc. (PPG) and Akzo Nobel NV (AKZOY), is striving to expand its product portfolio and market footprint through various acquisitions and collaborations. The company recently announced the launch of its HGTV HOME Paints at Lowe’s personal stores and on its website Lowes.com.
The line of products from Sherwin-Williams’ HGTV HOME portfolio will showcase advanced exterior and interior paint programs that will be offered at stores of both Sherwin-Williams and Lowe’s. This association thus successfully combines the design proficiency of HGTV with the superior quality of Sherwin-Williams’ paints, to promise homeowners a wholesome satisfactory experience.
Given that Lowe’s is well recognized by homeowners in the global home remodeling space, collaborating with Lowe’s should prove beneficial for Sherwin-Williams’ HGTV HOME solutions.
Moreover, Sherwin-Williams posted strong third-quarter 2014 results on Oct 28, on the back of improved operating results at its Paint Stores, Global Finishes and Consumer Groups.
Sherwin-Williams’ earnings rose roughly 31.4% year over year to a record $3.35 per share in the third quarter from $2.55 earned in the year-ago quarter. Its adjusted earnings (barring the acquisition-related impact and currency translation) of $3.39 per share surpassed the Zacks Consensus Estimate of $3.18. It also recorded net sales of around $3,150.6 million in the quarter, a 10.6% year-over-year rise.
Acquisitions contributed 3.3% to the rise in revenues. Segment-wise, the Paint Stores Group turned in another strong performance in the third quarter. It was also a record quarter in terms of net operating cash generation.
Moreover, house remodeling activity has picked up and growth is positive year-to-date in both the residential and non-residential markets. Many of the industrial coatings markets too are displaying increasing strength.
Sherwin-Williams currently carries a Zacks Rank #2 (Buy).
Another company in the basic materials sector worth considering is Valhi, Inc. (VHI), with a Zacks Rank #1 (Strong Buy).
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
PPG INDS INC (PPG): Free Stock Analysis Report
SHERWIN WILLIAM (SHW): Free Stock Analysis Report
VALHI INC (VHI): Get Free Report
AKZO NOBEL NV (AKZOY): Get Free Report
To read this article on Zacks.com click here.
Zacks Investment Research
Source: http://www.zacks.com/stock/news/157268/sherwin-williams-strikes-new-52-week-high-at-%2425616
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Please Help Support BeforeitsNews by trying our Natural Health Products below!
Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST
Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!
HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.
Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.
MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser! Cleans out toxic buildup with oxygen!
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover - Reduces Smart Meter radiation by 96%! (See Video).