12 Best Stocks to Buy in 2025 for Beginners

9. Sherwin-Williams Company (NYSE:SHW)

10-year Revenue CAGR: 7.66%

Number of Hedge Fund Holders: 78

Sherwin-Williams Company (NYSE:SHW) develops, manufactures, and sells paint and coatings. Its America Group segment operates exclusive outlets for Sherwin-Williams branded stains, paints, equipment, supplies, and floor coverings. Its Performance Coating Group segment sells products in the protective and marine, industrial wood, packaging, coil, and automotive markets.

The company reported a revenue of $6.16 billion in fiscal Q3 2024. Its Paint Stores Group underwent growth, supported by a high single-digit rise in protective and marine product sales. Despite the tough market conditions, The Sherwin-Williams Company’s (NYSE:SHW) investments in residential repainting helped maintain mid-single digital growth. It is expected to further improve its position, as lower interest rates are anticipated to cause a resurgence in home renovations, translating to increased sales of the company’s products.

The Sherwin-Williams Company (NYSE:SHW) has a strong cash position and is a consistent dividend grower. It generated an operating cash flow of $2.22 billion in the first nine months of fiscal 2024 and returned $1.97 billion to shareholders through dividends.

Parnassus Investments said the following about The Sherwin-Williams Company’s (NYSE:SHW) potential growth in its Q3 2024 investor letter:

“The Sherwin-Williams Company (NYSE:SHW) gained on optimism that lower interest rates would spur a resurgence in home renovations, leading to higher sales of its paint products. The company also hosted an investor day where it gave medium-term financial targets that were well received by investors.”