The Best and Worst Dow Stocks for the Next 12 Months

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

Upside Potential: 19.3%

Market Cap: $83 billion

Number of Hedge Fund Holders: 74

The Sherwin-Williams Company (NYSE:SHW) is a specialty chemicals company. It manufactures and sells paints, coatings, and related products to professional, industrial, commercial, and retail customers. The company generates 80% of its revenue from the domestic market and the rest from its foreign subsidiaries.

Morgan Stanley analyst Vincent Andrews maintained a Buy rating on The Sherwin-Williams Company (NYSE:SHW) on April 22, setting a price target of $385. He highlighted the company’s ability to deliver strong earnings in a weaker housing market, as he believes its solid pricing power enables it to withstand raw material cost changes and economic shifts. Sherwin-Williams is well-positioned for meaningful market share growth. Compared to his conservative view earlier, the analyst believes the company’s outlook is favourable as its guidance now seems achievable. Additionally, with falling interest rates and improving housing market conditions, Sherwin-Williams is expected to benefit further, potentially boosting its earnings multiple as it captures a greater market share.