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Sherwin-Williams’s Stock Performance in 2017 so Far

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Sherwin-Williams to announce its 3Q17 earnings

Sherwin-Williams (SHW) announced that it would release its 3Q17 earnings on October 24 before the market opens. SHW’s chairman, president, and chief executive officer, John Morikis, along with other executives, is scheduled to hold a conference call at 11:00 AM EDT.In this series, we’ll be looking at SHW’s stock performance in 2017 so far. We’ll also look at analysts’ revenue and EPS (earnings per share) estimates and their recommendations for the stock. Finally, we’ll compare SHW’s latest valuation against its peer.

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Sherwin-Williams’s stock performance

Sherwin-Williams has given stellar returns to investors in 2017 so far. On a year-to-date basis, SHW stock has risen 42.90%, outperforming the broad-based the SPDR S&P 500 ETF (SPY), which returned 14.20%. SHW has also outperformed its peers PPG Industries (PPG), RPM International (RPM), and Axalta (AXTA), which returned 19.40%, -3.90%, and 4.20%, respectively, for the same period. The strong performance was mainly driven by better-than-expected 1Q17 earnings. However, SHW 2Q17 earnings were lower than expected. The biggest push came from the completion of the Valspar acquisition. The acquisition is expected to add value to investors with the expected synergy saving of $320 million in the next three years.

SHW’s moving average and RSI

SHW’s strong performance has resulted in the stock trading 9.80% above the 100-day moving average price of $349.69, indicating an upward trend in the stock. SHW’s 14-day RSI (or relative strength index) of 77 indicates that the stock has moved into overbought territory temporarily and investors need to be cautious, as there could be some selling pressure on the stock.

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