5 Best Materials Stocks To Invest In

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

Number of Hedge Fund Holders: 71

The Sherwin-Williams Company (NYSE:SHW), headquartered in Cleveland, Ohio, is an American company primarily involved in the manufacturing, distribution, and sale of paints, coatings, floorcoverings, and related products. Its customer base includes professional, industrial, commercial, and retail clients, with a focus on North and South America as well as Europe.

Insider Monkey database took a look at 910 hedge fund portfolios for their third quarter 2023 investments and found out that 78 hedge fund investors had invested in The Sherwin-Williams Company (NYSE:SHW). Viking Global  was the largest shareholder which owned 2.3 million shares of The Sherwin-Williams Company (NYSE:SHW) for about $604 million.

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.”