Sherwin-Williams Company (SHW): Today's Featured Chemicals 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 Chemicals industry lower today making it today's featured Chemicals laggard. The industry as a whole closed the day down 0.5%. By the end of trading, Sherwin-Williams Company fell $3.58 (-1.9%) to $189.98 on average volume. Throughout the day, 623,932 shares of Sherwin-Williams Company exchanged hands as compared to its average daily volume of 776,700 shares. The stock ranged in price between $189.47-$193.23 after having opened the day at $193.23 as compared to the previous trading day's close of $193.56. Other companies within the Chemicals industry that declined today were: Pure Bioscience ( PURE), down 17.0%, Ikonics Corporation ( IKNX), down 8.8%, REX American Resources ( REX), down 7.4% and Flexible Solutions International ( FSI), down 6.2%.
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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 America, South America, Europe, Asia, and the Caribbean region. Sherwin-Williams Company has a market cap of $20.0 billion and is part of the basic materials sector. The company has a P/E ratio of 31.3, above the S&P 500 P/E ratio of 17.7. Shares are up 25.8% year to date as of the close of trading on Wednesday. Currently there are 3 analysts that rate Sherwin-Williams Company a buy, 1 analyst rates 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, impressive record of earnings per share growth, notable return on equity, good cash flow from operations and expanding profit margins. 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, Green Plains Renewable Energy ( GPRE), down 7.4%, Gevo ( GEVO), down 4.4%, Taminco ( TAM), down 2.9% and Rentech Nitrogen Partners ( RNF), down 2.8% , were all gainers within the chemicals industry with Cytec Industries ( CYT) being today's featured chemicals industry leader.

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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