14 Best Basic Materials Stocks To Buy Now

2. The Sherwin-Williams Company (NYSE:SHW)

Number of Hedge Fund Holders: 78

Paints and coatings materials company The Sherwin-Williams Company (NYSE:SHW) shares have gained about 22% over the past one year. In July The Sherwin-Williams Company (NYSE:SHW) jumped to new highs after the company posted second quarter results. The Sherwin-Williams Company (NYSE:SHW)’s profits jumped 37% to $794 million, or $3.07 a share, from $578 million, or $2.21 a share, a year earlier. Adjusted EPS in the period came in at $3.29 easily surpassing estimates of $2.69.

A total of 78 hedge funds in Insider Monkey’s database of 910 hedge funds have stakes in The Sherwin-Williams Company (NYSE:SHW). The biggest stakeholder of The Sherwin-Williams Company (NYSE:SHW) during this period was Andreas Halvorsen’s Viking Global which owns a $604 million stake in the company.

ClearBridge Large Cap Value Strategy made the following comment about The Sherwin-Williams Company (NYSE:SHW) in its Q2 2023 investor letter:

“We were fairly active in the quarter as market dislocations allowed us to be opportunistic, while focusing on companies with stronger moats, better pricing power, more predictable long-term growth and higher returns. In the materials sector we exited PPG Industries and initiated a position in The Sherwin-Williams Company (NYSE:SHW). While both companies operate in the paint and coating industry and are benefiting from improving margins as raw material prices have come down of late, we believe Sherwin-Williams’ dominant retail footprint affords it better pricing power through the cycle. The company provided conservative 2023 guidance and has been successfully gaining market share in the pro segment. While PPG has more European and industrial exposure, Sherwin-Williams’ residential and more domestic focus should also benefit the company as housing indicators appear to be troughing. Weak housing in the face of higher mortgage rates caused Sherwin-Williams stock to sell off in the first quarter, creating a compelling investment opportunity for long-term focused fundamental investors.”