10 Unrivaled Stocks of the Next 10 Years

7) The Sherwin-Williams Company (NYSE:SHW)

Number of hedge fund holders: 76

The Sherwin-Williams Company (NYSE:SHW) is the largest provider of architectural paint in the United States. The company has the largest market share in the Paint Stores industry, in which they make up over ~65% of total industry revenue.

The company has a wide economic moat mainly due to its strong brand value and robust pricing power. The strength of The Sherwin-Williams Company (NYSE:SHW)’s brand is visible in its recognition among both DIY enthusiasts and professional customers. This brand recognition should translate into strong and stable growth over the next 10 years.

Next, pricing growth forms an integral part of the company’s overall growth strategy. The company can pass on any cost inflation to its end customers.

Both the competitive advantages work hand-in-hand for The Sherwin-Williams Company (NYSE:SHW). Since it enjoys strong brand value, DIY and professional customers are less price-sensitive when it comes to paint pricing. Also, the company’s margins are expected to benefit from the vertical integration. Its tight control of supply chain and distribution enables the company to manage costs and be responsive to adjust prices.

The Sherwin-Williams Company (NYSE:SHW) has released 2Q 2024 results, with consolidated net sales increasing 0.5% in the quarter to reach $6.27 billion and EBITDA rising 12.1% to $1.44 billion. As a result of strong performance in the Paint Stores Group in 2Q 2024, the company was able to execute its strategy. For FY 2024, it anticipates diluted net income per share in the range of $10.30 – $10.60.

BMO Capital Markets increased their target price on shares of The Sherwin-Williams Company (NYSE:SHW) from $360.00 to $386.00, giving it an “Outperform” rating on 24^th July. As per Insider Monkey’s 2Q 2024 database, 76 hedge funds held stakes in The Sherwin-Williams Company (NYSE:SHW).