Is Sherwin-Williams (SHW) a Smart Long-Term Buy?

ClearBridge Investments, an investment management firm, published its “Large Cap Growth ESG Strategy” second quarter 2022 investor letter – a copy of which can be downloaded here. The ClearBridge Dividend Strategy outperformed its S&P 500 Index benchmark during the second quarter. On an absolute basis, the Strategy had gains in one of the 11 sectors in which it was invested for the quarter: the health care sector. The IT, financials and materials sectors, meanwhile, were the main detractors. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, ClearBridge Large Cap Growth ESG Strategy mentioned The Sherwin-Williams Company (NYSE:SHW) and explained its insights for the company. Founded in 1866, The Sherwin-Williams Company (NYSE:SHW) is a Cleveland, Ohio-based paint and coating manufacturing company with a $61.4 billion market capitalization. The Sherwin-Williams Company (NYSE:SHW) delivered a -32.68% return since the beginning of the year, while its 12-month returns are down by -20.16%. The stock closed at $237.08 per share on August 05, 2022.

Here is what ClearBridge Large Cap Growth ESG Strategy has to say about The Sherwin-Williams Company (NYSE:SHW) in its Q2 2022 investor letter:

“Rounding out our risk-focused stance, we believe the addition of Sherwin-Williams (NYSE:SHW), a manufacturer of paints and coatings for professional, industrial and retail customers, adds further resilience in the current inflationary environment. Paint is a relatively small part of total project input costs which can be passed through with price during inflation, and the company has a track record of successfully managing through periods of increased commodity costs. We are attracted to the company’s durability of growth by operating a strong franchise with both organic growth and consolidation amassing a strong portfolio of brands. We like Sherwin-Williams over competitors in the paint industry due to higher volumes, a domestically focused revenue base and strong relationships with the home builder and pro community. We believe the company will be able to keep pricing and expand margins as commodity pressures ease.”

Spray, Paint


Our calculations show that The Sherwin-Williams Company (NYSE:SHW) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. The Sherwin-Williams Company (NYSE:SHW) was in 54 hedge fund portfolios at the end of the second quarter of 2022, compared to 53 funds in the previous quarter. The Sherwin-Williams Company (NYSE:SHW) delivered a -13.28% return in the past 3 months.

In August 2022, we also shared another hedge fund’s views on The Sherwin-Williams Company (NYSE:SHW) in 15 Dividend Stocks for Passive Income. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.

Disclosure: None. This article is originally published at Insider Monkey.