Sherwin-Williams Company (SHW): Today's Featured Chemicals Laggard

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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 $1.89 (-1.0%) to $181.14 on light volume. Throughout the day, 430,478 shares of Sherwin-Williams Company exchanged hands as compared to its average daily volume of 666,900 shares. The stock ranged in price between $180.78-$184.29 after having opened the day at $183.41 as compared to the previous trading day's close of $183.03. Other companies within the Chemicals industry that declined today were: REX American Resources ( REX), down 6.4%, Rentech Nitrogen Partners ( RNF), down 6.0%, Oil-Dri Corporation of America ( ODC), down 5.0% and Valhi ( VHI), down 5.0%.

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 $18.6 billion and is part of the basic materials sector. The company has a P/E ratio of 27.1, above the S&P 500 P/E ratio of 17.7. Shares are up 19.3% year to date as of the close of trading on Friday. Currently there are 6 analysts that rate Sherwin-Williams Company a buy, 1 analyst rates it a sell, and 6 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 growth in earnings per share. 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 positive front, Axiall ( AXLL), up 10.3%, Gulf Resources ( GURE), up 9.7%, Olin Corporation ( OLN), up 7.8% and Amyris ( AMRS), up 6.5% , were all gainers within the chemicals industry with Dow Chemical ( DOW) 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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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