SHW Should I Buy
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Sherwin-Williams Co (SHW) is not a strong buy for a beginner, long-term investor at this moment. While the company demonstrates strong fundamentals, including consistent dividend growth and a slight revenue increase, the current market sentiment, insider selling, and lack of significant upside catalysts suggest a 'hold' position. Additionally, the pre-market price drop and mixed analyst ratings further support this decision.
The technical indicators show a mixed picture. The MACD is positive and expanding, indicating bullish momentum. The RSI is in the neutral zone at 76.442, and the moving averages are bullish (SMA_5 > SMA_20 > SMA_200). However, the stock is trading near its resistance levels (R1: 371.986, R2: 377.607), which could limit immediate upside potential.
Sherwin-Williams raised its dividend by 10.5% for the 47th consecutive year, nearing 'Dividend King' status.
A decline in the 30-year fixed mortgage rate could boost construction demand, benefiting the company's North American architectural paint segment.
The company has shown a 5.64% YoY revenue increase in Q4 2025.
Insiders are selling, with a 103.43% increase in selling activity over the last month.
The company's stock performance has been flat over the past year, underperforming the S&P
Analysts have mixed ratings, with some downgrades and reduced price targets citing weak near-term trends and below 10% earnings growth for three consecutive years.
The options market shows bearish sentiment.
In Q4 2025, Sherwin-Williams reported a 5.64% YoY revenue increase to $5.6 billion. However, net income dropped by -0.69% YoY to $476.8 million, and gross margin decreased slightly to 48.47%. EPS grew marginally by 1.05% YoY to 1.92, reflecting stable but unspectacular financial performance.
Analysts have mixed views. Positive ratings include Mizuho raising the price target to $400 and UBS increasing it to $420, both maintaining Buy/Outperform ratings. However, Deutsche Bank downgraded the stock to Hold, citing fair valuation and weak earnings growth. RBC and BofA also lowered their price targets, reflecting cautious sentiment.
