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 down 0.9%. By the end of trading, Sherwin-Williams Company rose $8.22 (5.8%) to $149.06 on heavy volume. Throughout the day, 3.1 million shares of Sherwin-Williams Company exchanged hands as compared to its average daily volume of 887,000 shares. The stock ranged in a price between $143.60-$151.76 after having opened the day at $144.78 as compared to the previous trading day's close of $140.84. Other companies within the Materials & Construction industry that increased today were: Caesarstone Sdot-Yam ( CSTE), up 5.8%, Heckmann ( HEK), up 5.4%, Jewett-Cameron Trading Company ( JCTCF), up 5.3%, and Guanwei Recycling ( GPRC), up 4.6%.
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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 $14.64 billion and is part of the industrial goods sector. The company has a P/E ratio of 25.7, above the S&P 500 P/E ratio of 17.7. Shares are up 57.8% year to date as of the close of trading on Friday. 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, notable return on equity, expanding profit margins, good cash flow from operations and compelling growth in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the negative front, Beazer Homes USA ( BZH), down 17.3%, India Globalization Capital ( IGC), down 9.3%, Hovnanian ( HOV), down 8.1%, and M/I Homes ( MHO), down 7.2%, were all laggards within the materials & construction industry with Fastenal Company ( FAST) 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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