SHW stock: buy or sell?
August 22nd, 2019
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, Asia, and Australia.
Should I buy SHW stock?Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. That's why is so important to choose your own trading strategy that fits your character as inversor. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.
These 2 buy setups work for Sherwin-Williams stock now:
|New all-time high||Yes|
|New 52 week high||Yes|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
Is Sherwin-Williams stock a buy?
Banks and financial institutions publish stock ratings everyday.At Stocks2.com, we collected 15 ratings published for SHW stock in the last month. The general sentiment of these ratings is bullish for SHW stock, with 8 positive ratings.
|Date||Analyst / Broker||Previous rating||Current rating|
|2019-7-29||BMO Capital Markets||n/a||Market Perform|
|2019-7-25||Royal Bank of Canada||n/a||Outperform|
|2019-7-24||Wells Fargo & Co||n/a||Outperform|
|2019-7-24||JPMorgan Chase & Co.||n/a||Neutral|
|2019-7-24||Credit Suisse Group||n/a||Outperform|
|2019-4-24||Wells Fargo & Co||n/a||Outperform|
|2019-4-24||Barclays||Equal Weight||Equal Weight|
SHW stock analysis
After marking all time highs on Monday, Sherwin-Williams depreciated -0.79% to $523.50.
Sherwin-Williams depreciated -0.79% today to $523.50 after topping to all time highs on Monday. On June SHW price bounced up over the SMA of 200 days demonstrating to be a significant support for this stock. Since SMA100d and SMA200d crossed up on May, SHW price climbed $91.17 per share (21.09%). From a daily perspective, SHW is in a short term uptrend after plotting its last bottom ($490.77, on August 7th) higher than the previous bottom, and its last top ($536.74, on Monday) also over the previous top. Now trading in between its last bottom and last top SHW might consolidate in a plain range, waiting to break out over $536.74 or down under $490.77. On Monday, SHW hit a new all time high, pushing higher than on Friday tops. Check different trading setups that use ATHs as triggers.
Sherwin-Williams shares topped new all time highs back again this week, setting highs to $536.74. Shares ended at $523.50 and slightly fell -1.24% during the week. Late July SHW rocketed an exceptional 10.87% in just one week.
SHW shows a strong mid-term uptrend with several rising tops and rising bottoms. Since its last bottom by mid July, SHW climbed unceasignly breaking out to new all time highs. Early June SHW price bounced up over the SMA of 40 weeks that acted as support stopping new slides. Early May, SMA20w and SMA40w crossed up triggering a rise of 15.38%.
SHW stock price history
SHW IPO was on March 17th, 1980 at $0.31 per share1. Since then, SHW stock grew a 168,771.00%, with an average of 4,327.50% per year. If you had invested right after SHW's IPO a $1,000 in SHW stock in 1980, it would worth $1,687,710.00 today.
1: Adjusted price after possible price splits or reverse-splits.
SHW stock historical price chart
SHW stock reached all-time highs on Monday with a price of $536.74.
SHW stock price target is $508.40How much a stock will be priced tomorrow or next week is quite unpredictable However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. For the last 30 days we found 14 price predictions for Sherwin-Williams stock:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
|2019-7-29||BMO Capital Markets||Raises Target||n/a||$517.00||-|
|2019-7-25||Royal Bank of Canada||Raises Target||n/a||$550.00||-|
|2019-7-24||Wells Fargo & Co||Reiterates||$510.00||$565.00||10.8%|
|2019-7-24||JPMorgan Chase & Co.||Raises Target||$435.00||$490.00||12.6%|
|2019-7-24||Deutsche Bank||Raises Target||$490.00||$550.00||12.2%|
|2019-7-24||Credit Suisse Group||Reiterates||$487.00||$525.00||7.8%|
|2019-7-24||Buckingham Research||Raises Target||$440.00||$460.00||4.5%|
|2019-4-24||Wells Fargo & Co||Reiterates||$475.00||$510.00||7.4%|
|2019-4-24||UBS Group||Raises Target||$448.00||$460.00||2.7%|
|2019-4-24||Deutsche Bank||Raises Target||$460.00||$490.00||6.5%|
|2019-4-15||Morgan Stanley||Raises Target||$455.00||$500.00||9.9%|
Financials and fundamental analysis
Earnings date and Earnings per ShareAfter publishing its last earnings report on April, Sherwin-Williams rocketed an extraordinary 16.27%. As soon as we get its posted EPS from the earnings report, we will extend this review.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsCompared to 2017, last anual sales report draw an extraordinary growth of 17.02% to $17,534.50 million USD. When comparing 2018 vs 2017, in contrast, profit margin (that is, the net income divided by revenues) dropped a -5.21% to 6.32%. Sherwin-Williams presents anual results in December, and to evaluate its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, Sherwin-Williams TTM sales up to March 2019 were $17,610.35 and earnings $1,103.86 M USD. When comparing this TTM figures with the last reported annuality, we can review Sherwin-Williams business evolution since December 2018: Annual sales up to March, compared to lastest yearly report, remained constant a tight 0.43%. Regarding profit margin, Sherwin-Williams remained stable -0.06% to 6.32%
|2013||$10,190 M||-||$748 M7.3%||-|
|2014||$11,130 M||9.22%||$866 M7.8%||15.76%|
|2015||$11,339 M||1.89%||$1,054 M9.3%||21.71%|
|2016||$11,856 M||4.55%||$1,133 M9.6%||7.48%|
|2017||$14,984 M||26.39%||$1,728 M11.5%||52.55%|
|2018||$17,535 M||17.02%||$1,109 M6.3%||-35.83%|
|TTM||$17,610 M||0.43%||$1,104 M6.3%||-0.44%|
Quarterly financial resultsSherwin-Williams reported $4,040.86 M in sales for 2019-Q1, a -0.57% less compared to previous quarter. Reported quarter income marked $245.24 million with a profit margin of 6.07%. Profit margin appreciated a 3.58% compared to previous quarter when profit margin was 2.48%. When comparing sales to same quarter last year, Sherwin-Williams sales marked a slightly good increase and inched a 1.91%. Looking back to recent quarterly results, Sherwin-Williams posted 3 negative quarters in a row.
|2017-Q2||$3,740 M||-||$361 M9.6%||-|
|2017-Q3||$4,510 M||20.59%||$317 M7.0%||-12.21%|
|2017-Q4||$3,980 M||-11.76%||$897 M22.6%||183.44%|
|2018-Q1||$3,965 M||-0.37%||$250 M6.3%||-72.13%|
|2018-Q2||$4,774 M||20.40%||$404 M8.5%||61.36%|
|2018-Q3||$4,731 M||-0.89%||$354 M7.5%||-12.28%|
|2018-Q4||$4,064 M||-14.10%||$101 M2.5%||-71.47%|
|2019-Q1||$4,041 M||-0.57%||$245 M6.1%||142.84%|
Sherwin-Williams ownershipWhen you are planning to invest in shares of a stock, it's always worth to overview its ownership structure.
Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Sherwin-Williams, 10.73% of all outstanding shares are owned by its staff.
In case of Sherwin-Williams stock, 78.98% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for SHW stock account 0.00%, no big difference from last month.
For a better understanding, the following table shows ownership data compared to other related stocks:
|Market cap||$48.3 B||$2.2 B||$242.4 B||$12.0 B||$26.1 B|
|Total shares||92.3 M||50.9 M||1,100.0 M||294.3 M||236.1 M|
|Float shares||82.0 M||50.5 M||1,100.0 M||287.2 M||235.8 M|
|- Institutional holdings (%)||79.0%||102.8%||72.2%||95.4%||81.6%|
|- Insider holdings (%)||10.7%||0.7%||0.1%||0.6%||0.1%|
|Shares in short selling||0.0%||0.0%||0.0%||0.0%||0.0%|
|Thursday, August 22nd, 2019|
|Day range||$522.61 - $531.65|
|Average true range||$11.22|
|50d mov avg||$486.38|
|100d mov avg||$464.61|
|200d mov avg||$436.65|
Sherwin-Williams performanceTo measure stock performance is always good to benchmark with competitors or related stocks. For Sherwin-Williams, the comparison is made against H. B. Fuller, Home Depot, Masco, PPG Industries and RPM International.
|FULH. B. Fuller||2.02%||-16.02%||-27.00%|
Sherwin-Williams competitorsWe chose a few stocks to conform a list of Sherwin-Williams competitors to check if you are interested in investing in SHW:
Latest SHW stock news
- Seeking AlphaSherwin-Williams: A Boring Company That Is A SuperstarAugust 1, 2019
- InvestorPlaceSherwin-Williams Earnings: SHW Stock Soars Despite Revenue MissJuly 23, 2019
- Seeking AlphaSherwin-Williams: Buy For Its Growth Rather Than Its DividendApril 18, 2019
- InvestorPlaceSherwin-Williams (SHW) Stock Tumbles on Profit WarningJanuary 15, 2019
- Seeking AlphaSherwin-Williams: A Great Pick Up In The Recent SelloffDecember 19, 2018