Mon Feb 17 13:20:00 UTC 2025: **Sherwin-Williams Outperforms Market in 2025 Despite Year-Long Underperformance**

Cleveland, OH – Sherwin-Williams (SHW), the $89.5 billion paint and coatings giant, has shown mixed performance recently. While its stock lagged behind the S&P 500 over the past year, gaining 14.5% compared to the index’s 20.5% rise, it has outperformed the market year-to-date (YTD) in 2025, rising 4.6% against the S&P 500’s 2.9% increase. However, its YTD performance still falls short of the Vanguard Materials Index Fund ETF (VAW)’s 5% gain.

The company’s underperformance in 2024 was attributed to economic headwinds, including fluctuating demand, rising raw material costs, higher interest rates, and weaker performance in its consumer brands and performance coatings segments due to reduced demand and internal cost pressures.

Despite these challenges, Sherwin-Williams reported better-than-expected fourth-quarter earnings on January 30th, with adjusted earnings per share (EPS) of $2.09 exceeding analyst predictions of $2.07. While revenue of $5.3 billion slightly missed expectations, the company anticipates adjusted EPS between $11.65 and $12.05 for fiscal year 2025. Analysts project a 5.9% EPS growth to $12 for the year.

Analyst sentiment remains positive, with a consensus “Moderate Buy” rating among 25 analysts. This reflects an increase in bullish sentiment compared to the previous month. RBC Capital maintains an “Outperform” rating but lowered its price target to $415, still implying a significant upside potential. The average price target among analysts stands at $397.32, representing an 11.8% premium to the current price. The highest price target suggests a potential upside of 24.9%.

Read More