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 0.6%. By the end of trading, Sherwin-Williams Company fell $2.80 (-1.6%) to $173.10 on heavy volume. Throughout the day, 1,474,698 shares of Sherwin-Williams Company exchanged hands as compared to its average daily volume of 672,300 shares. The stock ranged in price between $170.06-$176.52 after having opened the day at $176.51 as compared to the previous trading day's close of $175.90. Other companies within the Materials & Construction industry that declined today were: Cementos Pacasmayo SAA ADR ( CPAC), down 5.4%, Orion Marine Group ( ORN), down 5.0%, Hovnanian ( HOV), down 4.9% and Trex Company ( TREX), down 4.9%.
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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 $18.7 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 14.4% year to date as of the close of trading on Thursday. Currently there are 4 analysts that rate Sherwin-Williams Company a buy, 1 analyst rates it a sell, and 7 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, Empresas ICA S.A.B. de C.V ( ICA), down 6.5%, TRC Companies ( TRR), down 6.0%, Jewett-Cameron Trading Company ( JCTCF), down 5.1% and James Hardie Industries ( JHX), down 4.7% , were all gainers within the materials & construction industry with Plum Creek Timber ( PCL) 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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