) reached a new 52-week high of $217.99 on Aug 22, exceeding its
previous high of $217.85. Its shares pulled back to end the day at
The paint giant, which has a market cap of roughly $21 billion,
has seen its shares rise around 19% so far this year, higher than
the S&P 500's corresponding return of 9%. Average volume of
shares traded over the last three months is roughly 498.4K. The
company's long-term projected EPS growth is around 13.1%.
Sherwin-Williams, a Zacks Rank #3 (Hold) stock, posted strong
second-quarter 2014 results on July 17 riding on healthy gains
across its Paint Stores, Consumer and Global Finishes Groups
Adjusted earnings for the quarter topped the Zacks Consensus
Estimate. Revenues rose by double-digits year over year on higher
paint sales volume and contributions from acquisitions, and beat
expectations. The company raised its earnings guidance for 2014 to
$8.50 to $8.70 per share from $8.12 to $8.32 per share expected
Sherwin-Williams follows a strategy of growth through
acquisitions and internal initiatives such as efficient working
capital management and innovation. Its philosophy is to diversify
its customer base and expand its operations into various
The acquisition of the U.S. and Canadian businesses of Consorcio
Comex S.A. de C.V. has ushered in significant opportunity for
Sherwin-Williams. The acquisition is a strategic fit for the
company and has enabled it to better serve its customers across
some of its key markets. Sherwin-Williams is making good progress
in integrating the acquired business.
Moreover, Sherwin-Williams' aggressive cost control initiatives,
working capital reductions, supply chain optimization and
productivity improvement should continue to yield margin benefits.
It is also implementing effective pricing strategies to offset
higher raw material costs. The company also remains committed to
deliver incremental returns to shareholders.
That said, Sherwin-Williams faces persistent challenges in its
Latin American operations. It also remains exposed to currency
headwinds and volatility in raw material costs
Other Stocks to Consider
Other companies in the specialty chemicals space with favorable
Zacks Rank include Green Plains Inc. (
), BioAmber Inc. (
) and Ferro Corporation (
). While Green Plains retains a Zacks Rank #1 (Strong Buy), both
BioAmber and Ferro hold a Zacks Rank #2 (Buy).
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SHERWIN WILLIAM (SHW): Free Stock Analysis
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