Skip to main content

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified

Sherwin-Williams

(

SHW

) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Sherwin-Williams as such a stock due to the following factors:

  • SHW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $182.1 million.
  • SHW has traded 315 shares today.
  • SHW is trading at a new lifetime high.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in SHW with the Ticky from Trade-Ideas. See the FREE profile for SHW NOW at Trade-Ideas

More details on SHW:

The Sherwin-Williams Company is engaged in the development, manufacture, distribution, and sale of paints, coatings, and related products to professional, industrial, commercial, and retail customers worldwide. The stock currently has a dividend yield of 0.9%. SHW has a PE ratio of 28.8. Currently there are 7 analysts that rate Sherwin-Williams a buy, 1 analyst rates it a sell, and 4 rate it a hold.

TheStreet Recommends

The average volume for Sherwin-Williams has been 640,800 shares per day over the past 30 days. Sherwin-Williams has a market cap of $23.6 billion and is part of the basic materials sector and chemicals industry. The stock has a beta of 0.44 and a short float of 2.1% with 2.53 days to cover. Shares are up 37.5% year-to-date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Sherwin-Williams as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, expanding profit margins, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:

  • SHW's revenue growth has slightly outpaced the industry average of 9.4%. Since the same quarter one year prior, revenues rose by 10.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 31.37% and other important driving factors, this stock has surged by 40.30% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • SHERWIN-WILLIAMS CO has improved earnings per share by 31.4% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, SHERWIN-WILLIAMS CO increased its bottom line by earning $7.26 versus $6.01 in the prior year. This year, the market expects an improvement in earnings ($8.79 versus $7.26).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Chemicals industry average. The net income increased by 24.1% when compared to the same quarter one year prior, going from $262.97 million to $326.24 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Chemicals industry and the overall market, SHERWIN-WILLIAMS CO's return on equity significantly exceeds that of both the industry average and the S&P 500.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

null