11 Best Materials Stocks to Buy According to Hedge Funds

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

Number of Hedge Fund Holders: 74

In the US, The Sherwin-Williams Company (NYSE:SHW) is the biggest supplier of architectural paint. The company sells higher-quality paint at higher prices than most of its rivals, and it has more than 5,000 stores. The firm also supplies coatings for original equipment manufacturers and distributes its goods at big-box retailers. Over three-quarters of its operations take place in North America, and the 2016 acquisition of Valspar gave it significant worldwide exposure. Since Valspar’s long-standing relationship with Lowe’s resulted in an exclusive collaboration for the company in 2018, the acquisition has strengthened its previously limited retail footprint. Moreover, it expanded its performance coatings section by acquiring Valspar’s industrial business. The stock surged by over 8% in the last year, making it on our list of the best material stocks.

The Sherwin-Williams Company (NYSE:SHW) reported $5.3 billion in revenue for the fourth quarter of 2024, a 1% rise over the same time the previous year. Price changes and increasing demand for new residential construction and repainting projects drove an uptick of 3.4% in net sales for the company’s Paint Stores Group to $3.04 billion. The segment’s profit surged 6.9% to $606.4 million due to effective pricing measures.

In 2025, the management anticipates that adjusted EPS will be between $11.65 and $12.05. Diluted net income per share will be between $10.70 and $11.10. The Sherwin-Williams Company (NYSE:SHW) maintains its optimism despite acknowledging potential demand issues, concentrating on growing its market share, and using technology to aid in expansion.