The Best and Worst Dow Stocks

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

Number of Hedge Fund Holders: 74

Short Interest as of Apr 30, 2025: 2.04%

The Sherwin-Williams Company is the manufacturer, developer, distributor, and seller of coatings, paint, and related products. Citing potential weakness in the housing market, analysts at financial services firm Jefferies downgraded the company from Buy to Hold last month, lowering the price target from $423 to $380.

SHW is expected to face headwinds in the first half of 2025. However, KeyBanc Securities’ analyst Aleksey Yefremov anticipates SHW to gain in the latter half of 2025 on the back of the declining raw material costs.

The stock surged 3% right after reporting better-than-expected Q1 earnings. Despite a total sales decline, the company managed to improve its earnings, driven by disciplined cost management and enhanced margins.

Sherwin-Williams also reiterated its full-year 2025 guidance regardless of economic and global supply chain uncertainties. It expects consolidated sales to grow by a low single-digit percentage. Adjusted full-year EPS is anticipated to be in the range of $11.65 to $12.05.

CEO Heidi Petz minimized the potential tariff impact by highlighting:

“The largest portion of our revenue is in the United States, and the majority of our raw materials are sourced in the regions where we manufacture. This regional supply strategy helps shield the company from global trade disruptions and inflationary pressure stemming from tariffs.”

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