Trade-Ideas LLC identified Sherwin-Williams ( SHW) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Sherwin-Williams as such a stock due to the following factors:

  • SHW has 15x the normal benchmarked social activity for this time of the day compared to its average of 3.42 mentions/day.
  • SHW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $166.7 million.

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.

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More details on SHW:

The Sherwin-Williams Company develops, manufactures, distributes, and sells paints, coatings, and related products to professional, industrial, commercial, and retail customers primarily in North and South America, the Caribbean, Europe, and Asia. The stock currently has a dividend yield of 1.1%. SHW has a PE ratio of 27. Currently there are 8 analysts that rate Sherwin-Williams a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Sherwin-Williams has been 649,600 shares per day over the past 30 days. Sherwin-Williams has a market cap of $28.6 billion and is part of the basic materials sector and chemicals industry. The stock has a beta of 1.10 and a short float of 1.9% with 2.52 days to cover. Shares are up 20.2% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Sherwin-Williams as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 5.5%. Since the same quarter one year prior, revenues slightly increased by 5.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • SHERWIN-WILLIAMS CO has improved earnings per share by 13.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, SHERWIN-WILLIAMS CO increased its bottom line by earning $11.17 versus $8.80 in the prior year. This year, the market expects an improvement in earnings ($12.70 versus $11.17).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Chemicals industry average. The net income increased by 12.0% when compared to the same quarter one year prior, going from $131.40 million to $147.13 million.
  • The gross profit margin for SHERWIN-WILLIAMS CO is rather high; currently it is at 50.91%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 5.71% trails the industry average.
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.

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