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

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 lower today making it today's featured Materials & Construction laggard. The industry as a whole closed the day up 0.1%. By the end of trading, Sherwin-Williams Company fell $2.28 (-1.5%) to $148.94 on average volume. Throughout the day, 1.1 million shares of Sherwin-Williams Company exchanged hands as compared to its average daily volume of one million shares. The stock ranged in price between $147.34-$151.85 after having opened the day at $151.65 as compared to the previous trading day's close of $151.22. Other companies within the Materials & Construction industry that declined today were: MagneGas Corporation ( MNGA), down 16%, Real Goods Solar ( RSOL), down 15.4%, Integrated Electrical Services ( IESC), down 8.9%, and Guanwei Recycling ( GPRC), down 6.7%.
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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 $15.46 billion and is part of the industrial goods sector. The company has a P/E ratio of 27.1, above the S&P 500 P/E ratio of 17.7. Shares are up 69.4% year to date as of the close of trading on Thursday. Currently there are three analysts that rate Sherwin-Williams Company a buy, one analyst rates it a sell, and nine 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 no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

On the positive front, Tri-Tech ( TRIT), up 9.1%, Hovnanian ( HOV), up 7.1%, Gafisa ( GFA), up 5.5%, and Pure Cycle Corporation ( PCYO), up 5%, were all gainers within the materials & construction industry with PulteGroup ( PHM) being today's featured materials & construction industry leader.

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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