5 Best Stocks to Buy According to Billionaire Richard Chilton

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

Chilton Investments’ Stake: $315 million 

The Sherwin-Williams Company (NYSE:SHW) is a specialty chemicals company that makes and sells paints, coatings, and other associated products. The shares are flat over the year and up by 4.5% year-to-date. Citi discussed the firm on June 24th as it raised the share price target to $380 from $355 and kept a Buy rating on the shares. Citi had reinstated coverage of The Sherwin-Williams Company (NYSE:SHW) on June 3rd and set a $355 price target along with a Buy rating. It had viewed the price back then as an attractive entry opportunity, as it could offer upside in case of a cyclical recovery.

UBS cut the share price target to $330 from $385 and reduced the rating to Neutral from Buy on June 2nd as part of a more balanced risk-reward outlook. The Sherwin-Williams Company (NYSE:SHW)’s shares trade at a forward P/E multiple of 28.82, which is higher than the S&P 500’s 21.

Aoris Investment Management discussed The Sherwin-Williams Company (NYSE:SHW) in its Q1 2026 investor letter:

“The Sherwin-Williams Company (NYSE:SHW) is a leading provider of paints and coatings, with a particularly strong position with professional painters in the US. A key driver of the paint market is the volume of property sales, as homes are often repainted after they’re purchased. Higher mortgage rates and lower population growth in the US have meant the number of property sales has been weak in recent years, affecting Sherwin-Williams’ paint volumes.

Growth in its industrial coatings business has also been weak due to a sluggish industrial economy. Even though Sherwin-Williams has continued to grow its market share, we have become concerned that its end markets are structurally slower growing. We also had the opportunity to purchase a higher quality business in Cintas at a wider discount to fair value.”