With a market cap of $87.4 billion, The Sherwin-Williams Company (SHW) is a global leader in the manufacture, development, distribution, and sale of paints, coatings, and related products serving professional, industrial, commercial, and retail customers. It operates more than 5,400 company-owned stores and offers renowned brands including Sherwin-Williams®, Valspar®, HGTV HOME® by Sherwin-Williams, Dutch Boy®, Krylon®, Minwax®, and Thompson’s® WaterSeal® across more than 120 countries.
Shares of the paintmaker have underperformed the broader market over the past 52 weeks. SHW stock has declined 1.9% over this time frame, while the broader S&P 500 Index ($SPX) has gained 20.6%. Moreover, the stock has increased 11.7% on a YTD basis, compared to SPX's 13.9% return.
Looking closer, shares of the Cleveland, Ohio-based company have lagged behind the State Street Materials Select Sector SPDR ETF's (XLB) 15.4% surge over the past 52 weeks.
Sherwin-Williams has underperformed over the past year due to softening end-market demand, a prolonged U.S. housing downturn, and declining volumes.
However, the stock climbed 8.3% on Jul. 28 after the company raised its 2026 adjusted EPS forecast to $11.80 - $12.20 and upgraded expected sales growth to mid-to-high single digits. The stronger outlook was supported by successful price increases, with Q2 2026 net sales rising 7.5% to $6.79 billion and adjusted EPS reaching $3.70.
Investors also welcomed the planned 8% price increase at the Paint Stores Group effective September 1, which is intended to offset high-single-digit raw-material inflation and higher energy, logistics, and packaging costs despite the company’s expectation of no broad-based demand recovery.
For the fiscal year ending in December 2026, analysts expect Sherwin-Williams' adjusted EPS to grow 5.7% year-over-year to $12.08. The company's earnings surprise history is promising. It beat the consensus estimates in each of the last four quarters.
Among the 25 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 12 “Strong Buy” ratings, two “Moderate Buys,” and 11 “Holds.”
This configuration has remained unchanged over the past three months.
On Jul. 29, UBS analyst Joshua Spector raised Sherwin-Williams’ price target to $390 while maintaining a “Neutral” rating.
The mean price target of $388.59 represents an 8% premium to SHW’s current price levels. The Street-high price target of $420 suggests a 16.7% potential upside.
