Although fear continues to rule the Street, Sherwin-Williams (NYSE:SHW) sought to paint things in a decidedly sunnier hue. The maker of Dutch Boy paints and Thompson's WaterSeal sealed up a quarter with surprising growth and even more surprising profit projections for the rest of the year.

Revenues increased 3.3% to $2.3 billion, while profits fell 3% to $1.50 per share. However, stripping out the seven acquisitions completed in 2007 and 2008 would have caused sales to drop and profits would have been worse, as comps at Sherwin-Williams stores fell by 1.4%. And although global sales growth of 12.5% was impressive, favorable currency exchange rates artificially boosted the top-line growth.

You might be tempted to think then that the Motley Fool Stock Advisor recommendation is using "Caution Tape" yellow instead of "Sunny Disposition," given its inability to grow through organic means. While growth achieved by means of picking up competitors can be a danger signal, smart acquisitions could position the company well for when the economy brightens.

More importantly, the Dutch Boy maker no longer has to keep its finger in the dike of litigation costs. Back in July, the Rhode Island Supreme Court overturned a contamination ruling that had gone against Sherwin-Williams, NL Industries (NYSE:NL), and Millennium Holdings.

The paint maker remains solidly profitable, operationally sound, and has a firm grip on the future. And compared to the story going on over at DIY rivals Lowe's (NYSE:LOW) and Home Depot (NYSE:HD), Sherwin-Williams has even raised its fiscal-year guidance. When it comes to its books, Sherwin-Williams will keep painting it black.

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Fool contributor Rich Duprey does not have a financial position in any of the stocks mentioned in this article. You can see his holdings here. The Motley Fool has a disclosure policy.