Top 3 Materials Stocks That Could Blast Off This Month
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 16 2025
0mins
Source: Benzinga
Oversold Stocks in Materials Sector: The materials sector has several oversold stocks, including Graphic Packaging Holding Co, Sherwin-Williams Co, and Cementos Pacasmayo SAA, all showing RSI values near or below 30, indicating potential buying opportunities for undervalued companies.
Recent Performance and Analyst Actions: Graphic Packaging's stock fell 10% after disappointing earnings, Sherwin-Williams was downgraded by Citigroup leading to an 8% drop, and Cementos Pacasmayo also experienced a decline, reflecting challenges in the current economic environment.
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Analyst Views on SHW
Wall Street analysts forecast SHW stock price to rise
12 Analyst Rating
11 Buy
1 Hold
0 Sell
Strong Buy
Current: 307.700
Low
370.00
Averages
392.92
High
422.00
Current: 307.700
Low
370.00
Averages
392.92
High
422.00
About SHW
The Sherwin-Williams Company is engaged in the manufacture, development, distribution, and sale of paint, coatings and related products to professional, industrial, commercial, and retail customers primarily in North and South America with additional operations in the Caribbean region, Europe, Asia and Australia. Its Paint Stores Group segment is engaged in servicing the needs of architectural and industrial paint contractors and do-it-yourself homeowners. The Consumer Brands Group segment manufactures and distributes a broad portfolio of branded and private-label architectural paint, stains, varnishes, industrial products, wood finishes products, wood preservatives, applicators, corrosion inhibitors, aerosols, caulks and adhesives to retailers, including home centers and hardware stores, dedicated dealers and distributors. The Performance Coatings Group segment develops and sells industrial coatings for wood finishing and general industrial (metal and plastic) applications and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Honeywell's Underperformance Affects Dow Jones Index
- Dow Component Changes: Honeywell replaced Raytheon Technologies in the Dow on August 31, 2020, but has only delivered a 56.2% total return since then, significantly lagging behind RTX's 231.1%, indicating its failure to meet market expectations.
- Unfulfilled Innovation Potential: Although Honeywell was viewed as a diversified and innovative industrial giant in 2020, its persistent underperformance in earnings and free cash flow growth, partly due to supply chain and inflationary pressures, has hindered its ability to capitalize on its strengths.
- Spinoff Plans Generate Interest: In November 2024, activist investor Elliott Investment Management amassed a position exceeding $5 billion, prompting Honeywell to consider a breakup; the successful spinoff of Solstice Advanced Materials in October 2025, which saw a 79.4% gain, highlights the potential for growth through such restructuring.
- Future Outlook and Market Reaction: Honeywell plans to spin off its aerospace division on June 29, 2024, with the remaining business focusing on industrial and building automation, and the market anticipates that this structural adjustment could enhance its standing in the Dow, reflecting a broader preference for focused companies.
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- Dividend Growth Rate: The Sherwin-Williams Company has achieved an average dividend growth rate of 10.90% over the past five years, positioning itself among the 14 best dividend stocks, which highlights its stable growth potential and attracts long-term investors.
- Price Target Increase: Evercore ISI analyst Greg Melich raised the price target for Sherwin-Williams from $390 to $400 while reiterating an Outperform rating, reflecting market optimism regarding the company's future performance.
- Strong Sales Performance: In its Q1 2026 earnings call, Sherwin-Williams reported sales exceeding guidance across all three reportable segments, demonstrating the company's ability to maintain growth amid global uncertainty, thereby enhancing its competitive position.
- Market Share Growth: CEO Heidi Petz noted that the company's differentiation strategy is widening the gap with competitors, with a rebound in residential repaint activity and encouraging property maintenance trends further driving market share gains.
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- Technical Analysis Tool: Comparing the current share price to the 200-day moving average provides investors with deeper technical insights, aiding in the assessment of market trends and potential buy or sell opportunities.
- ETF Unit Trading Mechanism: ETFs trade like stocks, where investors buy and sell 'units' that can be created or destroyed based on investor demand, allowing for greater adaptability to market changes.
- Liquidity Monitoring: Weekly monitoring of changes in shares outstanding for ETFs highlights significant inflows or outflows, where inflows necessitate purchasing underlying assets, while outflows may lead to selling, impacting the performance of individual stocks within the ETF.
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SHW Stock Rises 4.2% Amid Sector Performance
- Stock Performance: SHW is currently trading up approximately 4.2%, indicating a strong performance in the specialty chemicals sector, particularly when compared to competitors like Linde PLC and Ecolab Inc.
- Industry Comparison: On the same trading day, Linde PLC is up about 0.7% and Ecolab Inc is up about 2.8%, suggesting SHW's relative strength in the industry may attract more investor interest.
- Three-Month Price History: A three-month price history chart shows SHW's stock performance outpacing that of Linde and Ecolab, reflecting market confidence in SHW's future growth potential.
- Analyst Insights: While market sentiment towards SHW is positive, analysts caution that attention must be paid to the overall economic environment's potential impact on the specialty chemicals sector to assess future investment risks.
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- Cautious Consumer Spending: Benjamin Moore's CEO Dan Calkins highlighted that consumers are spending less on paint due to elevated inflation and interest rates, indicating a softening market for the company.
- Decline in Home Sales: Existing home sales fell by 3.6% in March to a seasonally adjusted annual rate of 3.98 million, marking a nine-month low, as Middle East conflicts raised gas prices and weakened household purchasing power, exacerbating market sluggishness.
- Rising Mortgage Rates: As of April 30, the average 30-year mortgage rate increased to 6.30% from 6.15% at year-end, with Calkins previously hoping rates would drop below 5%, thus placing greater financial strain on potential homebuyers.
- Shift in Product Sales Trends: Calkins noted that many customers who typically purchase premium products are now opting for mid-range options due to increased spending on gas and groceries, prompting Benjamin Moore to adjust its sales strategy to align with changing consumer behavior.
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- Price Range Analysis: DIA's stock has a 52-week low of $397.41 and a high of $505.30, with the latest trade at $489.80, indicating price fluctuations near the high point that may influence investor buying decisions.
- Technical Analysis Tool: Comparing the recent stock price to the 200-day moving average can provide valuable technical insights for investors, helping to assess market trends and potential buy or sell opportunities.
- ETF Trading Mechanism: Exchange-traded funds (ETFs) trade like stocks, where investors buy and sell 'units' that can be created or destroyed based on investor demand, impacting the liquidity and market performance of the ETF.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in ETF shares outstanding helps identify those experiencing notable inflows (new units created) or outflows (old units destroyed), as these liquidity changes can affect the performance of individual stocks held within the ETFs.
See More
Honeywell's Underperformance Affects Dow Jones Index
- Dow Component Changes: Honeywell replaced Raytheon Technologies in the Dow on August 31, 2020, but has only delivered a 56.2% total return since then, significantly lagging behind RTX's 231.1%, indicating its failure to meet market expectations.
- Unfulfilled Innovation Potential: Although Honeywell was viewed as a diversified and innovative industrial giant in 2020, its persistent underperformance in earnings and free cash flow growth, partly due to supply chain and inflationary pressures, has hindered its ability to capitalize on its strengths.
- Spinoff Plans Generate Interest: In November 2024, activist investor Elliott Investment Management amassed a position exceeding $5 billion, prompting Honeywell to consider a breakup; the successful spinoff of Solstice Advanced Materials in October 2025, which saw a 79.4% gain, highlights the potential for growth through such restructuring.
- Future Outlook and Market Reaction: Honeywell plans to spin off its aerospace division on June 29, 2024, with the remaining business focusing on industrial and building automation, and the market anticipates that this structural adjustment could enhance its standing in the Dow, reflecting a broader preference for focused companies.
See More
Sherwin-Williams Company Shows Significant Dividend Growth
- Dividend Growth Rate: The Sherwin-Williams Company has achieved an average dividend growth rate of 10.90% over the past five years, positioning itself among the 14 best dividend stocks, which highlights its stable growth potential and attracts long-term investors.
- Price Target Increase: Evercore ISI analyst Greg Melich raised the price target for Sherwin-Williams from $390 to $400 while reiterating an Outperform rating, reflecting market optimism regarding the company's future performance.
- Strong Sales Performance: In its Q1 2026 earnings call, Sherwin-Williams reported sales exceeding guidance across all three reportable segments, demonstrating the company's ability to maintain growth amid global uncertainty, thereby enhancing its competitive position.
- Market Share Growth: CEO Heidi Petz noted that the company's differentiation strategy is widening the gap with competitors, with a rebound in residential repaint activity and encouraging property maintenance trends further driving market share gains.
See More
DIA ETF 52-Week Price Analysis
- Price Range Analysis: The DIA ETF's 52-week low is $411.57 per share, with a high of $505.30, and the last trade at $497.54 indicates the ETF is fluctuating near its high, reflecting market caution regarding its future performance.
- Technical Analysis Tool: Comparing the current share price to the 200-day moving average provides investors with deeper technical insights, aiding in the assessment of market trends and potential buy or sell opportunities.
- ETF Unit Trading Mechanism: ETFs trade like stocks, where investors buy and sell 'units' that can be created or destroyed based on investor demand, allowing for greater adaptability to market changes.
- Liquidity Monitoring: Weekly monitoring of changes in shares outstanding for ETFs highlights significant inflows or outflows, where inflows necessitate purchasing underlying assets, while outflows may lead to selling, impacting the performance of individual stocks within the ETF.
See More
SHW Stock Rises 4.2% Amid Sector Performance
- Stock Performance: SHW is currently trading up approximately 4.2%, indicating a strong performance in the specialty chemicals sector, particularly when compared to competitors like Linde PLC and Ecolab Inc.
- Industry Comparison: On the same trading day, Linde PLC is up about 0.7% and Ecolab Inc is up about 2.8%, suggesting SHW's relative strength in the industry may attract more investor interest.
- Three-Month Price History: A three-month price history chart shows SHW's stock performance outpacing that of Linde and Ecolab, reflecting market confidence in SHW's future growth potential.
- Analyst Insights: While market sentiment towards SHW is positive, analysts caution that attention must be paid to the overall economic environment's potential impact on the specialty chemicals sector to assess future investment risks.
See More
Inflation Impacts Paint Demand for Benjamin Moore
- Cautious Consumer Spending: Benjamin Moore's CEO Dan Calkins highlighted that consumers are spending less on paint due to elevated inflation and interest rates, indicating a softening market for the company.
- Decline in Home Sales: Existing home sales fell by 3.6% in March to a seasonally adjusted annual rate of 3.98 million, marking a nine-month low, as Middle East conflicts raised gas prices and weakened household purchasing power, exacerbating market sluggishness.
- Rising Mortgage Rates: As of April 30, the average 30-year mortgage rate increased to 6.30% from 6.15% at year-end, with Calkins previously hoping rates would drop below 5%, thus placing greater financial strain on potential homebuyers.
- Shift in Product Sales Trends: Calkins noted that many customers who typically purchase premium products are now opting for mid-range options due to increased spending on gas and groceries, prompting Benjamin Moore to adjust its sales strategy to align with changing consumer behavior.
See More
Analysis of DIA Stock's 52-Week High and Low Points
- Price Range Analysis: DIA's stock has a 52-week low of $397.41 and a high of $505.30, with the latest trade at $489.80, indicating price fluctuations near the high point that may influence investor buying decisions.
- Technical Analysis Tool: Comparing the recent stock price to the 200-day moving average can provide valuable technical insights for investors, helping to assess market trends and potential buy or sell opportunities.
- ETF Trading Mechanism: Exchange-traded funds (ETFs) trade like stocks, where investors buy and sell 'units' that can be created or destroyed based on investor demand, impacting the liquidity and market performance of the ETF.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in ETF shares outstanding helps identify those experiencing notable inflows (new units created) or outflows (old units destroyed), as these liquidity changes can affect the performance of individual stocks held within the ETFs.
See More
