What Analysts Are Saying About Sherwin-Williams Stock

In the latest quarter, 6 analysts provided ratings for Sherwin-Williams SHW, showcasing a mix of bullish and bearish perspectives.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $313.83, a high estimate of $378.00, and a low estimate of $275.00. This current average has increased by 1.78% from the previous average price target of $308.33.

Understanding Analyst Ratings: A Comprehensive Breakdown

The perception of Sherwin-Williams by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Sherwin-Williams. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Sherwin-Williams compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

For valuable insights into Sherwin-Williams's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Sherwin-Williams analyst ratings.

Delving into Sherwin-Williams's Background

Sherwin-Williams is the largest provider of architectural paint in the United States. The company has over 4,900 stores and sells premium paint at higher price points than most competitors. Sherwin-Williams also sells paint-related products in big-box stores and provides coatings for original equipment manufacturers.

Breaking Down Sherwin-Williams's Financial Performance

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Revenue Growth: Sherwin-Williams's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2023, the company achieved a revenue growth rate of approximately 1.15%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Materials sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Sherwin-Williams's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 12.45% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Sherwin-Williams's ROE excels beyond industry benchmarks, reaching 20.55%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Sherwin-Williams's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.3% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 3.14, caution is advised due to increased financial risk.

Understanding the Relevance of Analyst Ratings

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

This article was generated by Benzinga's automated content engine and reviewed by an editor.