SHW - Sherwin-Williams: Like Watching Paint Dry

2024-04-23 19:32:53 ET

Summary

• Sherwin-Williams is a high-quality, market-leading company in the global paints and coatings industry, with strong competitive advantages and consistent growth.
• Despite SHW's attractive business model, its current valuation is unattractive, and the company's exposure to cyclical end markets, particularly housing, adds risk.
• We assign a Hold rating to SHW and believe investors should wait for a more attractive entry point.

With volatility on the rise, we’re watching closely for opportunities to deploy capital into high quality businesses at attractive prices.

And although we’re confident SHW meets our business quality criteria, it hasn’t yet made it into our “strike zone.” Until it does, we’re fine waiting for a pullback or deploying capital elsewhere....

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