Sherwin-Williams Company (SHW): Today's Featured Materials & Construction Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Sherwin-Williams Company ( SHW) pushed the Materials & Construction industry higher today making it today's featured materials & construction winner. The industry as a whole closed the day up 1.7%. By the end of trading, Sherwin-Williams Company rose $2.95 (2.1%) to $142.58 on average volume. Throughout the day, 1.3 million shares of Sherwin-Williams Company exchanged hands as compared to its average daily volume of 879,500 shares. The stock ranged in a price between $140.57-$144.22 after having opened the day at $142.10 as compared to the previous trading day's close of $139.63. Other companies within the Materials & Construction industry that increased today were: Clean Harbors ( CLH), up 18%, Great Lakes Dredge & Dock Corporation ( GLDD), up 11.2%, Quanta Services ( PWR), up 9.9%, and Eagle Materials ( EXP), up 9.8%.
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The Sherwin-Williams Company engages in the development, manufacture, distribution, and sale of paints, coatings, and related products to professional, industrial, commercial, and retail customers primarily in North and South America, the Caribbean region, Europe, and Asia. Sherwin-Williams Company has a market cap of $14.33 billion and is part of the industrial goods sector. The company has a P/E ratio of 25.2, below the average materials & construction industry P/E ratio of 28 and above the S&P 500 P/E ratio of 17.7. Shares are up 56.4% year to date as of the close of trading on Tuesday. Currently there are two analysts that rate Sherwin-Williams Company a buy, two analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Sherwin-Williams Company as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, compelling growth in net income, solid stock price performance and impressive record of earnings per share growth. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

On the negative front, Real Goods Solar ( RSOL), down 10.5%, Pure Cycle Corporation ( PCYO), down 3.8%, India Globalization Capital ( IGC), down 3.5%, and Veolia Environnement ( VE), down 3.3%, were all laggards within the materials & construction industry with Toll Brothers ( TOL) being today's materials & construction industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the materials & construction industry could consider SPDR S&P Homebuilders ETF ( XHB) while those bearish on the materials & construction industry could consider ProShares Short Basic Materials Fd ( SBM).

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