Why Sherwin-Williams (SHW) Stock Is Trading Lower Today
What Happened?
Shares of paint and coating manufacturer Sherwin-Williams (NYSE:SHW) fell 9% in the morning session after the company reported underwhelming third-quarter earnings results, with EBITDA and EPS falling short of Wall Street's estimates. Revenue was also underwhelming and came in approximately in line with expectations, as management called out "choppiness in the demand environment." Overall, this was a softer quarter.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Sherwin-Williams? Access our full analysis report here, it’s free.
What The Market Is Telling Us
Sherwin-Williams’s shares are not very volatile and have only had one move greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
Sherwin-Williams is up 19.8% since the beginning of the year, and at $365.31 per share, it is trading close to its 52-week high of $389.39 from October 2024. Investors who bought $1,000 worth of Sherwin-Williams’s shares 5 years ago would now be looking at an investment worth $1,933.
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