Breaking News
0

3 Reasons To Buy Sherwin-Williams (SHW) Ahead Of Its Earnings Report

By Zacks Investment ResearchStock MarketsJul 19, 2017 01:44AM ET
www.investing.com/analysis/3-reasons-to-buy-sherwin-williams-(shw)-ahead-of-its-earnings-report-200202147
3 Reasons To Buy Sherwin-Williams (SHW) Ahead Of Its Earnings Report
By Zacks Investment Research   |  Jul 19, 2017 01:44AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Sherwin-Williams Company (NYSE:SHW) , a manufacturer, distributor and retailer of paint and coatings, will release its Q2 earnings report on Wednesday.

Sherwin-Williams, a Zacks Rank #1 (Strong Buy), beat its earnings projections last quarter by an impressive 9.66%, and the company is poised to beat its earnings estimates again this quarter due to its strong Zacks Rank and Earnings ESP of 0.44%.

Additionally, the firm operates in the paints and related products industry, which currently sits in the top 9% on the Zacks Industry Rank.

But if that’s not enough to convince you of the company’s strength, here are three other reasons to remain optimistic on Sherwin-Williams as we approach its earnings report date:

1. Expansion through acquisitions

Sherwin-Williams has extended its customer base and operations into various geographic areas through mounting acquisitions. The company purchased Comex in September 2013, which created a strategic fit for the company and enabled it to better serve its customers across key markets.

Furthermore, Sherwin-Williams acquired Valspar, one of its largest competitors, in June 2017. These acquisitions should allow Sherwin-Williams to strengthen its position as a leading paints and coatings provider globally, leveraging highly complementary offerings, strong brands and technologies. While the Valspar acquisition likely won’t impact this quarter’s earnings, the company’s M&A strategy is proof of its active management philosophy and strong industry lead.

2. Sales Growth in Key Categories

Sherwin-Williams is projected to exhibit year-over-year growth throughout many segments of the company. For example, in Q2 2016, Sherwin-Williams’s Consumer Group reported sales of $474.5 million. According to our exclusive consensus estimates, the Consumer Group is expected to post revenues of $547.4 million for Q2 2017, which would represent 15.36% year-over-year growth in unit sales.

Additionally, Sherwin-Williams posted net sales of $499.2 million in its Global Group during Q2 2016. Our estimates project sales in this department to come in at $612.9 million, which would represent 22.78% year-over-year growth.

Finally, Sherwin-Williams reported net sales for its Paint Stores Group of $2.1 billion in Q2 of 2016. The Paint Stores Group in Q2 2017 is projected to bring in $2.3 billion, which would demonstrate a 9.52% year-over-year growth in net sales.

These important stock drivers are from our exclusive non-financial metrics consensus estimate file. These estimates are updated daily and are based on the independent research of expert stock analysts. Learn more here>>>

3. Excellent Growth Metrics

Sherwin-Williams Company possesses superb growth ability due to numerous strong metrics the stock shows. For instance, Sherwin-Williams’ RoE of 61.58% and projected sales growth of 27.72% tower over the industry averages of 21.38% and 4.85%, respectively.

Furthermore, the company is projected to post sales of $3.45 billion and earnings of $4.55 per share, which represents year-over-year growth of 7.08% and 12.16%, respectively. In essence, Sherwin-Williams possesses excellent measures for company-wide growth, which bodes well for shareholders heading toward its report date.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look. See the pot trades we're targeting>>



Sherwin-Williams Company (The) (SHW): Free Stock Analysis Report

Original post

Zacks Investment Research
3 Reasons To Buy Sherwin-Williams (SHW) Ahead Of Its Earnings Report
 
3 Reasons To Buy Sherwin-Williams (SHW) Ahead Of Its Earnings Report

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email