Stock Price & Analysis

Based on the provided data and current market context, here's a comprehensive analysis of whether to buy or sell SHW stock:

Technical Analysis

The stock is showing bearish signals in the short term:

• Currently trading at $344.57, down 1.56% from previous close
• RSI at 38.03 indicates approaching oversold territory but not yet at extreme levels
• MACD shows negative momentum with -1.33 and histogram at -1.74
• Price has fallen below both 20-day (358.58) and 50-day (353.38) moving averages

Fundamental Analysis

Key metrics:

• P/E ratio: 32.26x, above industry average of 28.89x
• Revenue (TTM): $23.1B
• Net margin: 11.6%, improved from 10.4% last year
• Dividend yield: 0.83% with recent 10.5% increase to $0.79/share

Recent Developments

• Company announced acquisition of BASF's Brazilian paint business (Suvinil) for $1.15B
• Q4 2024 earnings beat estimates with EPS of $2.09 vs $2.07 expected
• Paint stores division showing improvements while consumer brands segment experienced minor dips

Analyst Consensus

• Out of 20 analysts:
  • 14 Buy ratings
  • 5 Hold ratings
  • 1 Sell rating
• Average price target: $400.59, suggesting 16.27% upside potential

Conclusion

SELL. While SHW has strong fundamentals and analyst support, current technical indicators and valuation metrics suggest waiting for a better entry point. The stock is trading at premium multiples compared to industry averages and showing negative momentum technically. Consider waiting for price stabilization or a pullback closer to support levels around $342.38 before initiating new positions.

Based on the provided data and recent analyst reports, here's a price prediction analysis for SHW stock in 2025:

Technical Analysis: The stock is currently trading at $347.89 in pre-market [Relevant Data], showing signs of consolidation after a recent pullback. The RSI(14) at 38.03 indicates the stock is approaching oversold territory but hasn't reached extreme levels yet.

Price Target Analysis:

• According to RBC Capital's latest analysis, they lowered their price target to $415 from $438 while maintaining an Outperform rating
• The mean analyst price target is $397.32, suggesting an 11.8% upside potential from current levels
• The Street-high target stands at $444, indicating a potential 24.9% upside

Growth Catalysts:

• Expected EPS growth of 5.9% to $12.00 for fiscal 2025
• Strong paint stores segment performance and pricing power in architectural coatings
• Potential benefits from lower interest rates spurring home renovations

Price Prediction for 2025: Based on technical indicators, analyst forecasts, and fundamental factors, SHW stock is expected to reach $395-405 by end of 2025, representing a 13-16% upside from current levels. This prediction is supported by:

• Strong market position in architectural paint segment
• Improving margins across segments
• Analyst consensus showing "Moderate Buy" rating with 15 Strong Buy ratings

The S1 support level for SHW Stock is $344.69 ,The R1 resistant level for SHW Stock is $363.12.

As of the end of day on 2025-02-27, the price of SHW Stock was $355.01.

The target price for SHW Stock according to analyst rating is 400.60, with the highest price target at 430.00 and the lowest at 300.00. Analysts have a Moderate Buy rating on SHW Stock overall.

The market cap of SHW is $89.4B.

Based on the provided data and current market context, here's a comprehensive analysis of whether SHW is overvalued:

Valuation Analysis: SHW's current P/E ratio of 33.73 is significantly higher than its 2022 level of 30.76, indicating an expanding valuation multiple [Relevant Data].

Technical Position: The stock shows bearish technical signals with RSI at 38.03 and trading below its 20-day moving average of 358.58, suggesting near-term weakness.

Growth Assessment: Revenue growth has been modest at 4.1% YoY (from $22.15B to $23.05B), while net income improved by 18.3% (from $2.02B to $2.39B), indicating improving operational efficiency but not explosive growth to justify the premium valuation.

Market Performance: SHW has gained 7.11% YTD as of February 14, 2025, underperforming the broader market, suggesting investors may be questioning its current valuation levels.

Conclusion: Given the high P/E ratio, modest revenue growth, and technical weakness, SHW appears overvalued at current levels.

The Sherwin-Williams Company is engaged in the development, manufacture, 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.

Based on the provided data and market analysis, here is the price prediction for Sherwin-Williams (SHW) stock by 2030:

Sherwin-Williams stock is projected to reach approximately $625-650 by 2030, representing an 80% upside from current levels around $347.89. This forecast is supported by the company's dominant market position in architectural paint, strong brand loyalty, and consistent margin expansion. The company's strategic acquisitions like Valspar and its ability to maintain pricing power in professional markets will drive long-term growth.

The growth trajectory is backed by analysts' positive outlook, with RBC Capital maintaining an "Outperform" rating and current consensus price targets showing an 11.8% upside potential in the near term. The company's strong financial health, including a net margin of 9.06% and ROE of 11.7%, provides a solid foundation for sustained growth through 2030.

SHW has a total of 64088 employees.