SHW stock: buy or sell?

SHW stock price: $523.50 -0.79% At close on August 22nd, 2019

Updated on:
August 22nd, 2019

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After topping to all time highs on Monday, Sherwin-Williams depreciated -0.79% today to $523.50.

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:

Buy setupElegible
New all-time highYes
New 52 week highYes
Price crossing up 200d MANo
100d MA crossing up 200d MANo

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.
Is SHW a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-7-29BMO Capital Marketsn/aMarket Perform
2019-7-25Royal Bank of Canadan/aOutperform
2019-7-24Wells Fargo & Con/aOutperform
2019-7-24KeyCorpn/aOverweight
2019-7-24JPMorgan Chase & Co.n/aNeutral
2019-7-24Deutsche Bankn/aBuy
2019-7-24Credit Suisse Groupn/aOutperform
2019-7-24Buckingham Researchn/aNeutral
2019-7-24Barclaysn/aEqual Weight
2019-6-25Northcoast ResearchBuyNeutral
2019-4-24Wells Fargo & Con/aOutperform
2019-4-24UBS GroupNeutralNeutral
2019-4-24Deutsche BankBuyBuy
2019-4-24BarclaysEqual WeightEqual Weight
2019-4-15Morgan StanleyOverweightOverweight

SHW stock analysis

Daily outlook

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.

SHW stock chart (daily)

Weekly outlook

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 chart (weekly)

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 $508.40

How 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:
SHW stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-7-29BMO Capital MarketsRaises Targetn/a$517.00-
2019-7-25Royal Bank of CanadaRaises Targetn/a$550.00-
2019-7-24Wells Fargo & CoReiterates$510.00$565.0010.8%
2019-7-24KeyCorpReiterates$500.00$525.005%
2019-7-24JPMorgan Chase & Co.Raises Target$435.00$490.0012.6%
2019-7-24Deutsche BankRaises Target$490.00$550.0012.2%
2019-7-24Credit Suisse GroupReiterates$487.00$525.007.8%
2019-7-24Buckingham ResearchRaises Target$440.00$460.004.5%
2019-7-24BarclaysRaises Target$470.00$505.007.4%
2019-4-24Wells Fargo & CoReiterates$475.00$510.007.4%
2019-4-24UBS GroupRaises Target$448.00$460.002.7%
2019-4-24Deutsche BankRaises Target$460.00$490.006.5%
2019-4-24BarclaysRaises Target$440.00$470.006.8%
2019-4-15Morgan StanleyRaises Target$455.00$500.009.9%
(in average)$467.50$508.409.0%
The price target for Sherwin-Williams stock is $508.40, moving in a range between $565.00 and $460.00. In average, analysts' outlook on SHW price target is positive, improving the prediction by a 9.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

After 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.
SHW earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a3.8n/a
2017-Q32017-10-244.654.752.2%
2017-Q42018-01-253.123.161.3%
2018-Q12018-04-243.143.5713.7%
2018-Q22018-07-245.595.732.5%
2018-Q32018-10-255.715.68-0.5%
2018-Q42019-01-313.563.54-0.6%
2019-Q12019-04-223.72n/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared 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%

SHW annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$10,190 M-$748 M7.3%-
2014$11,130 M9.22%$866 M7.8%15.76%
2015$11,339 M1.89%$1,054 M9.3%21.71%
2016$11,856 M4.55%$1,133 M9.6%7.48%
2017$14,984 M26.39%$1,728 M11.5%52.55%
2018$17,535 M17.02%$1,109 M6.3%-35.83%
TTM $17,610 M0.43%$1,104 M6.3%-0.44%

Quarterly financial results

Sherwin-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.
SHW quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$3,740 M-$361 M9.6%-
2017-Q3$4,510 M20.59%$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 M20.40%$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 ownership

When 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:

SHWFULHDMASPPG
Market cap$48.3 B$2.2 B$242.4 B$12.0 B$26.1 B
Total shares92.3 M50.9 M1,100.0 M294.3 M236.1 M
Float shares82.0 M50.5 M1,100.0 M287.2 M235.8 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 selling0.0%0.0%0.0%0.0%0.0%

SHW summary

Thursday, August 22nd, 2019
Open$531.36
Close$523.50
Day range$522.61 - $531.65
Previous close$527.66
Session gain-0.79%
Average true range$11.22
50d mov avg$486.38
100d mov avg$464.61
200d mov avg$436.65
Daily patternlt06a
Weekly pattern lb03c

Sherwin-Williams performance

To 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.
Stock3m6m12m
SHWSherwin-Williams21.81%19.59%18.13%
FULH. B. Fuller2.02%-16.02%-27.00%
HDHome Depot14.65%16.22%12.32%
MASMasco10.12%8.89%6.56%
PPGPPG Industries3.19%0.19%1.83%
RPMRPM International24.67%17.05%4.52%

Sherwin-Williams competitors

We 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