Breaking News
0

Sherwin-Williams (SHW) Upped To Buy On Solid Q1, Upbeat View

By Zacks Investment ResearchStock MarketsMay 23, 2017 01:35AM ET
www.investing.com/analysis/sherwin-williams-(shw)-upped-to-buy-on-solid-q1,-upbeat-view-200190943
Sherwin-Williams (SHW) Upped To Buy On Solid Q1, Upbeat View
By Zacks Investment Research   |  May 23, 2017 01:35AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Paint giant Sherwin-Williams (NYSE:SHW) was upgraded to a Zacks Rank #2 (Buy) on May 23. Going by the Zacks model, companies sporting a Zacks Rank #2 have strong chances of outperforming the broader market.

Why the Upgrade?

Sherwin-Williams recorded higher year-over-year profits in first-quarter 2017. Moreover, adjusted earnings of $2.27 per share in the quarter beat the Zacks Consensus Estimate of $2.07. Improved operating results at the Paint Stores and Global Finishes Groups led to the earnings upside.

Sherwin-Williams Company (The) Price and Consensus

The company recorded net sales of $2,761.4 million in the first quarter, marking a 7.3% year-over-year rise. Revenues beat the Zacks Consensus Estimate of $2,740 million. Increased paint sales volumes in Paint Stores Group and a change in revenues classification led to higher sales.

Sherwin-Williams expects mid-to-high single digit percentage year-over-year increase in net sales for the second quarter. The company also expects earnings in second-quarter 2017 in the range of $4.15–$4.35 per share, including a 25 cents charge from costs associated with the planned acquisition of Valspar.

The company also raised its earnings view for 2017 and now expects earnings per share for the year in the range of $13.65 to $13.85 per share, compared to $11.99 earned in 2016. This includes a charge of 40 cents per share related to the planned acquisition of Valspar and a benefit of about 25 cents related to income tax provision.

Estimates for Sherwin-Williams for second-quarter 2017 have been going up of late. Over the last 30 days, the Zacks Consensus Estimate for the quarter has increased by around 2% to $4.54 per share.

Earnings estimates for the current year also witnessed an increase of 3.6% over the past month to $14.24 per share.

Sherwin-Williams’ shares have rallied 5.9% in the last three months, outperforming the Zacks categorized Paints & Allied Products industry’s gain of 4%.



Sherwin-Williams is benefiting from its cost control initiatives. Moreover, it remains focused on growth through acquisitions and expansion of operations. Sherwin-Williams should gain from the planned acquisition of Valspar, which will allow it to strengthen its position as a leading paints and coatings provider globally.

Other Stocks to Consider

Other top ranked companies in the construction space include U S Concrete, Inc. (NASDAQ:USCR) , SPIRAX SARCO SPXSF and Potlatch Corp. (NASDAQ:PCH) . All the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

U S Concrete has expected long-term growth of 10%.

SPIRAX SARCO has expected long-term growth of 8.5%.

Potlatch Corporation has expected long-term growth of 5%.

Zacks' 2017 IPO Watch List

Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.

One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>



Potlatch Corporation (PCH): Free Stock Analysis Report

U S Concrete, Inc. (USCR): Free Stock Analysis Report

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

SPIRAX SARCO (SPXSF): Free Stock Analysis Report

Original post

Zacks Investment Research
Sherwin-Williams (SHW) Upped To Buy On Solid Q1, Upbeat View
 
Sherwin-Williams (SHW) Upped To Buy On Solid Q1, Upbeat View

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