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Sherwin-Williams (SHW) Stock Sinks As Market Gains: What You Should Know
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Sherwin-Williams (SHW - Free Report) closed at $239.49 in the latest trading session, marking a -1.34% move from the prior day. This move lagged the S&P 500's daily gain of 1.5%. Meanwhile, the Dow gained 1.12%, and the Nasdaq, a tech-heavy index, added 0.32%.
Prior to today's trading, shares of the paint and coatings maker had lost 9.45% over the past month. This has was narrower than the Construction sector's loss of 12.26% and lagged the S&P 500's loss of 6.54% in that time.
Sherwin-Williams will be looking to display strength as it nears its next earnings release, which is expected to be July 27, 2022. On that day, Sherwin-Williams is projected to report earnings of $2.78 per share, which would represent year-over-year growth of 4.91%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6 billion, up 11.46% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.48 per share and revenue of $21.88 billion. These totals would mark changes of +16.32% and +9.68%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Sherwin-Williams. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection remained stagnant. Sherwin-Williams is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Sherwin-Williams has a Forward P/E ratio of 25.61 right now. For comparison, its industry has an average Forward P/E of 22.37, which means Sherwin-Williams is trading at a premium to the group.
Investors should also note that SHW has a PEG ratio of 1.94 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Paints and Related Products stocks are, on average, holding a PEG ratio of 2.83 based on yesterday's closing prices.
The Paints and Related Products industry is part of the Construction sector. This group has a Zacks Industry Rank of 96, putting it in the top 39% 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.
View the Zacks #1 Rank List
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Sherwin-Williams (SHW) Stock Sinks As Market Gains: What You Should Know
Sherwin-Williams (SHW - Free Report) closed at $239.49 in the latest trading session, marking a -1.34% move from the prior day. This move lagged the S&P 500's daily gain of 1.5%. Meanwhile, the Dow gained 1.12%, and the Nasdaq, a tech-heavy index, added 0.32%.
Prior to today's trading, shares of the paint and coatings maker had lost 9.45% over the past month. This has was narrower than the Construction sector's loss of 12.26% and lagged the S&P 500's loss of 6.54% in that time.
Sherwin-Williams will be looking to display strength as it nears its next earnings release, which is expected to be July 27, 2022. On that day, Sherwin-Williams is projected to report earnings of $2.78 per share, which would represent year-over-year growth of 4.91%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6 billion, up 11.46% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.48 per share and revenue of $21.88 billion. These totals would mark changes of +16.32% and +9.68%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Sherwin-Williams. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection remained stagnant. Sherwin-Williams is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Sherwin-Williams has a Forward P/E ratio of 25.61 right now. For comparison, its industry has an average Forward P/E of 22.37, which means Sherwin-Williams is trading at a premium to the group.
Investors should also note that SHW has a PEG ratio of 1.94 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Paints and Related Products stocks are, on average, holding a PEG ratio of 2.83 based on yesterday's closing prices.
The Paints and Related Products industry is part of the Construction sector. This group has a Zacks Industry Rank of 96, putting it in the top 39% 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.