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Here’s What’s Driving Sherwin-Williams Stock


Nov. 22 2017, Updated 7:32 a.m. ET

Sherwin-Williams stock performance

So far in 2017, Sherwin-Williams (SHW) has had a good run. As of November 16, 2017, it has had very strong returns compared to its peer group. SHW stock has risen 44.4%, while PPG Industries (PPG) and Axalta Coating Systems (AXTA) have risen 20.3% and 22%, respectively. RPM International (RPM) stock has fallen 4.1%. SHW has also outperformed the broad-based SPDR S&P 500 ETF (SPY), which has risen 15.7%.

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The strong growth in Sherwin Williams was driven by the completed acquisition of Valspar. The acquisition makes it one of the top coatings companies in America. So far in 2017, both companies have reported similar revenues. SHW also beat analysts’ earnings and revenue expectations in 3Q17. The cost synergy effect from the acquisition is expected to drive earnings growth. However, SHW has downgraded its fiscal 2017 EPS (earnings per share) to $11.20–$11.50, primarily due to the impact of the hurricanes in the third quarter. It’s expected to recover in 4Q17 as reconstruction activities from the damages begin.

Moving averages and RSI

The strong growth in the stock has resulted in SHW trading 7.7% above the 100-day moving average of $359.40, indicating an upward trend. Its relative strength index of 51 indicates that the stock is neither overbought nor oversold.

In this series, we’ll be taking a close look at SHW’s 4Q17 dividend, dividend yield trend, dividend payout, and latest analyst recommendations.


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