Sherwin-Williams currently trades at $326.33 per share and has shown little upside over the past six months, posting a middling return of 4%. The stock also fell short of the S&P 500’s 18.4% gain during that period.
Is there a buying opportunity in Sherwin-Williams, or does it present a risk to your portfolio? Get the full stock story straight from our expert analysts, it’s free.
Why Is Sherwin-Williams Not Exciting?
We’re passing on Sherwin-Williams for now. Here are three reasons why SHW doesn’t excite us, plus one stock we’d rather own.
1. Long-Term Revenue Growth Disappoints
A company’s long-term performance is an indicator of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Regrettably, Sherwin-Williams’s sales grew at a sluggish 4.4% compounded annual growth rate over the last five years. This fell short of our benchmark for the industrials sector.
2. Projected Revenue Growth Is Slim
Forecasted revenues by Wall Street analysts signal a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite.
Over the next 12 months, sell-side analysts expect Sherwin-Williams’s revenue to rise by 5.2%. Although this projection indicates its newer products and services will spur better top-line performance, it is still below the sector average.
3. EPS Barely Growing
We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.
Sherwin-Williams’s unimpressive 5.3% annual EPS growth over the last five years aligns with its revenue performance. On the bright side, this tells us its incremental sales were profitable.
Final Judgment
Sherwin-Williams isn’t a terrible business, but it doesn’t pass our quality test. With its shares underperforming the market lately, the stock trades at 25.7× forward P/E (or $326.33 per share). Investors with a higher risk tolerance might like the company, but we don’t really see a big opportunity at the moment. We’re pretty confident there are superior stocks to buy right now. We’d suggest looking at an all-weather company that owns household favorite Taco Bell.
Stocks We Would Buy Instead of Sherwin-Williams
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.
Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
