Q2 STOCKS TO BUY

Sherwin-Williams Stock Extends Capture of New Highs Pre-Earnings

SHW also announced a quarterly dividend last week

Apr 26, 2021 at 11:26 AM
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The Sherwin-Williams Company (NYSE:SHW) is an American company in the paint and coating industry. The company manufactures, distributes, and sells paints, coatings, floorcoverings, and related products. Sherwin-Williams provides to professional, industrial, commercial, and retail customers primarily in North and South America and Europe.

SHW has increased 61% over the past 12 months. About one year ago, Sherwin-Williams stock price bottomed out at a three-year low of $165.76. However, flashing forward to present-day performance, the painting name just this morning touched a fresh record high of $275. Year-to-date the the equity has tacked on 11%.

On April 21, Sherwin-Williams announced a quarterly dividend of $0.55 per common share payable on June 4 to shareholders of record on May 21. Sherwin-Williams stock currently offers a 0.80% dividend yield and a $2.20 forward dividend.

Sherwin-Williams is also slated to report quarterly earnings results before the open, tomorrow, April 27. SHW has outperformed earnings expectations 100% of the time over the past year. For the first quarter of 2020, Sherwin-Williams beat analyst estimates by a margin of $0.05 and reported an earnings per share (EPS) of $1.36. For the second quarter of 2020, Sherwin-Williams' EPS increased to $2.37 and beat expectations by a margin of $0.42. For the third quarter of 2020, SHW reported another increase in earnings, rising to $2.76 per share and beating estimates by a margin of $0.16. In the most recent quarterly report, Sherwin-Williams posted an EPS of $1.70 and beat expectations by a margin of $0.08. Wall Street is projecting that Sherwin-Williams will report an EPS of $1.64 tomorrow.

In general, there are quite a few better value stocks available in the market than SHW, but the company’s growth rate could trigger Sherwin-Williams stock to continue pushing for new highs. Sherwin-Williams stock's forward price-earnings ratio of 30.58 is an indicator that growth potential.

 
 

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