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 0.1%. By the end of trading, Sherwin-Williams Company rose $1.70 (1.1%) to $163.84 on average volume. Throughout the day, 838,131 shares of Sherwin-Williams Company exchanged hands as compared to its average daily volume of one million shares. The stock ranged in a price between $162.25-$164.70 after having opened the day at $162.70 as compared to the previous trading day's close of $162.14. Other companies within the Materials & Construction industry that increased today were: India Globalization Capital ( IGC), up 6.7%, Integrated Electrical Services ( IESC), up 5.3%, Heckmann ( HEK), up 5.2%, and Patrick Industries ( PATK), up 4.8%.
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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 $16.74 billion and is part of the basic materials sector. The company has a P/E ratio of 29.4, above the S&P 500 P/E ratio of 17.7. Shares are up 5.5% year to date as of the close of trading on Thursday. Currently there are two analysts that rate Sherwin-Williams Company a buy, one analyst rates it a sell, and 11 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. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the negative front, M/I Homes ( MHO), down 12.4%, China Advanced Construction Materials Group ( CADC), down 6.2%, Goldfield ( GV), down 6.1%, and Meritage Homes Corporation ( MTH), down 5.6%, were all laggards within the materials & construction industry with Hovnanian ( HOV) 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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