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 down 1.8%. By the end of trading, Sherwin-Williams Company fell $3.67 (-2.0%) to $178.93 on average volume. Throughout the day, 838,969 shares of Sherwin-Williams Company exchanged hands as compared to its average daily volume of 702,100 shares. The stock ranged in price between $178.01-$182.80 after having opened the day at $181.42 as compared to the previous trading day's close of $182.60. Other companies within the Materials & Construction industry that declined today were: Caesarstone Sdot-Yam ( CSTE), down 6.9%, Homex Development ( HXM), down 6.8%, Fastenal Company ( FAST), down 6.3% and Pure Cycle Corporation ( PCYO), down 6.0%.
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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 $19.3 billion and is part of the basic materials sector. The company has a P/E ratio of 30.3, above the S&P 500 P/E ratio of 17.7. Shares are up 18.7% year to date as of the close of trading on Tuesday. Currently there are 4 analysts that rate Sherwin-Williams Company a buy, 1 analyst rates it a sell, and 8 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 the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the positive front, Tile Shop Holdings ( TTS), down 3.3%, Skyline Corporation ( SKY), down 3.2%, Matrix Service Company ( MTRX), down 2.9% and Casella Waste Systems ( CWST), down 2.5% , were all gainers within the materials & construction industry with Hovnanian ( HOV) 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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