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4-Star Stocks Poised to Pop: Sherwin-Williams

By Brian D. Pacampara, CFA - Updated Apr 5, 2017 at 8:05PM

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Market-trouncing returns could be written in these four stars.

Based on the aggregated intelligence of 120,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, paint maker Sherwin-Williams (NYSE:SHW) has earned a respected four-star ranking. While five-star stocks have been the best performers, our data has shown that four-star stocks still outshine the market by a significant margin and shouldn't be taken lightly; conversely, low-rated stocks have woefully lagged the market average.

With that in mind, let's take a closer look at Sherwin-Williams' business, and see what CAPS investors are saying about the stock right now.

Sherwin-Williams facts

Headquarters (founded)

Cleveland, Ohio (1866)

Market Cap

$6.38 billion

Industry

Chemicals

TTM Revenue

$8.13 billion

Management

CEO Christopher Connor (since 1999)
CFO Sean Hennessy (since 2001)

Return on Equity (average last three years)

29.9%

Dividend Yield

2.6%

Competitors

PPG Industries (NYSE:PPG)
Masco (NYSE:MAS)

CAPS members bullish on SHW also bullish on

Johnson & Johnson (NYSE:JNJ)
Apple (NASDAQ:AAPL)

CAPS members bearish on SHW also bearish on

Toll Brothers (NYSE:TOL)
KB Home (NYSE:KBH)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 371 of the 407 members who have rated Sherwin-Williams -- some 91% -- believe the stock will outperform the S&P 500 going forward. These Foolish bulls include texasjamboree and jrnegron.

Last month, texasjamboree kept the Sherwin-Williams bull case deceptively simple: “A well-managed company with ‘common sense.’ Something sadly lacking in many large corporations.”

In an earlier pitch from October, jrnegron shared that sentiment, elaborating on Sherwin's smart decision-making:

This Company has proven to be aware of market trends and have implemented all the needed measurements to obtain margins on their products. That include: prices, store management, inventory and all related components. They will be affected as any other companies by this actual economic stuation but will obtain better results than most of them all. I think shareholders should be patient and at the end of the year there will be positive dividends.

What do you think about Sherwin-Williams, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 120,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Sherwin-Williams and Apple are Motley Fool Stock Advisor picks. PPG Industries, Masco, and Johnson & Johnson are Income Investor selections. The Fool's disclosure policy always gets a perfect score.

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Stocks Mentioned

The Sherwin-Williams Company Stock Quote
The Sherwin-Williams Company
SHW
$243.74 (4.90%) $11.38
Apple Inc. Stock Quote
Apple Inc.
AAPL
$169.24 (2.62%) $4.32
Johnson & Johnson Stock Quote
Johnson & Johnson
JNJ
$170.67 (0.29%) $0.49
Toll Brothers, Inc. Stock Quote
Toll Brothers, Inc.
TOL
$48.96 (3.58%) $1.69
KB Home Stock Quote
KB Home
KBH
$32.54 (3.63%) $1.14
PPG Industries, Inc. Stock Quote
PPG Industries, Inc.
PPG
$133.54 (4.99%) $6.35
Masco Corporation Stock Quote
Masco Corporation
MAS
$53.65 (4.79%) $2.45

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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