Sherwin-Williams Company (SHW): Today's Featured Chemicals 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 Chemicals industry higher today making it today's featured chemicals winner. The industry as a whole closed the day up 0.2%. By the end of trading, Sherwin-Williams Company rose $2.90 (1.8%) to $165.38 on average volume. Throughout the day, 821,572 shares of Sherwin-Williams Company exchanged hands as compared to its average daily volume of 893,100 shares. The stock ranged in a price between $161.81-$165.38 after having opened the day at $161.95 as compared to the previous trading day's close of $162.48. Other companies within the Chemicals industry that increased today were: Ferro ( FOE), up 30.8%, American Pacific Corporation ( APFC), up 9.6%, American Vanguard Corporation ( AVD), up 8.6%, and Ceres ( CERE), up 6.4%.
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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 $16.66 billion and is part of the basic materials sector. The company has a P/E ratio of 26.8, above the S&P 500 P/E ratio of 17.7. Shares are up 5.1% year to date as of the close of trading on Friday. 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, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and solid stock price performance. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the negative front, Penford Corporation ( PENX), down 6.8%, Lightbridge ( LTBR), down 6.3%, Pure Bioscience ( PURE), down 6.3%, and BioFuel Energy Corporation ( BIOF), down 3.4%, were all laggards within the chemicals industry with Agrium ( AGU) being today's chemicals industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the chemicals industry could consider Materials Select Sector SPDR ( XLB) while those bearish on the chemicals industry could consider ProShares Short Basic Materials Fd ( SBM).

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