We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Sherwin-Williams (SHW) Gains But Lags Market: What You Should Know
Read MoreHide Full Article
Sherwin-Williams (SHW - Free Report) closed at $247.48 in the latest trading session, marking a +1.74% move from the prior day. The stock lagged the S&P 500's daily gain of 2.76%. Meanwhile, the Dow gained 2.43%, and the Nasdaq, a tech-heavy index, added 0.25%.
Heading into today, shares of the paint and coatings maker had gained 9.18% over the past month, outpacing the Construction sector's gain of 6.34% and the S&P 500's gain of 4.44% in that time.
Wall Street will be looking for positivity from Sherwin-Williams as it approaches its next earnings report date. This is expected to be July 27, 2022. The company is expected to report EPS of $2.80, up 5.66% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.99 billion, up 11.34% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.46 per share and revenue of $21.86 billion. These totals would mark changes of +16.07% and +9.59%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Sherwin-Williams. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.19% lower. Sherwin-Williams is currently a Zacks Rank #4 (Sell).
Valuation is also important, so investors should note that Sherwin-Williams has a Forward P/E ratio of 25.71 right now. This valuation marks a premium compared to its industry's average Forward P/E of 22.87.
It is also worth noting that SHW currently has a PEG ratio of 2.1. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. SHW's industry had an average PEG ratio of 2.1 as of yesterday's close.
The Paints and Related Products industry is part of the Construction sector. This group has a Zacks Industry Rank of 241, putting it in the bottom 5% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow SHW in the coming trading sessions, be sure to utilize Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Sherwin-Williams (SHW) Gains But Lags Market: What You Should Know
Sherwin-Williams (SHW - Free Report) closed at $247.48 in the latest trading session, marking a +1.74% move from the prior day. The stock lagged the S&P 500's daily gain of 2.76%. Meanwhile, the Dow gained 2.43%, and the Nasdaq, a tech-heavy index, added 0.25%.
Heading into today, shares of the paint and coatings maker had gained 9.18% over the past month, outpacing the Construction sector's gain of 6.34% and the S&P 500's gain of 4.44% in that time.
Wall Street will be looking for positivity from Sherwin-Williams as it approaches its next earnings report date. This is expected to be July 27, 2022. The company is expected to report EPS of $2.80, up 5.66% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.99 billion, up 11.34% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.46 per share and revenue of $21.86 billion. These totals would mark changes of +16.07% and +9.59%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Sherwin-Williams. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.19% lower. Sherwin-Williams is currently a Zacks Rank #4 (Sell).
Valuation is also important, so investors should note that Sherwin-Williams has a Forward P/E ratio of 25.71 right now. This valuation marks a premium compared to its industry's average Forward P/E of 22.87.
It is also worth noting that SHW currently has a PEG ratio of 2.1. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. SHW's industry had an average PEG ratio of 2.1 as of yesterday's close.
The Paints and Related Products industry is part of the Construction sector. This group has a Zacks Industry Rank of 241, putting it in the bottom 5% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow SHW in the coming trading sessions, be sure to utilize Zacks.com.