NYSEMaterialsChemicals - SpecialtySnapshot 2026-08-31
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Create your account →Broken: Primary pillar broken — adjusted EPS in range $11.50 to $11.90 for 2026: FY26 EPS guidance $10.92-$11.32 vs $11.50-$11.90 target.
Sherwin-Williams grows sales about 5% yearly, helped by price increases. Profit per share is expected near $11.70 in 2026. The company beats earnings estimates and shows steady revenue growth. It maintains a strong position in paints and coatings.
The industrial economy is weak, slowing sales growth. Failed acquisition talks may hurt strategic plans. Profit growth could stall below expectations.
The stock price is about 33% above our estimate of intrinsic value. Analysts expect about 5% revenue growth. Our view is more cautious on growth and valuation compared to the Street.
Breaks if: adjusted EPS falls below $11.50 in FY26
Sherwin-Williams aims to maintain its adjusted EPS guidance in the range of $11.50 to $11.90 for 2026.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on steady growth. The current thesis state is intact, supported by recent earnings performance, though management execution remains volatile.
The market seems to price SHW at a durable premium compared to peers, indicating that some growth expectations are already factored in. However, the expectations gap suggests that there may be room for improvement in performance without a significant price adjustment.
Management has set ambitious targets for sales and earnings growth, which they have been working towards, though execution quality is fragile. Recent financial performance has been neutral, with a low probability of missing guidance, but past misses raise caution.
The long-term thesis hinges on management's ability to deliver on their growth targets and navigate potential risks, such as guidance cuts. Additionally, external factors like inflation trends and the performance of sector peers will be crucial for SHW's momentum.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports adjusted EPS guidance for 2026. The company maintained its adjusted EPS guidance of $11.50 to $11.90 for 2026. This positive performance reinforces confidence in the company's outlook.
as of 2026-08-31
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: price increases are rolled back or fail to offset cost pressures
Continue implementing targeted price increases by end market and geography across all businesses to offset raw material inflation and maintain margins.
Stated as a priority in 3 of last 4 quarters. Management consistently emphasized targeted price increases across businesses to offset inflation. Paint Stores Group net sales increased by mid-single digit percentages due to price increases, including an 8% announced hike effective September 1, 2026. This indicates delivery on pricing actions supporting margin management.
“We implemented pricing actions to offset raw material inflation, including an announced 8% price increase in Paint Stores Group effective September 1.”
“We are continuing to implement targeted price increases by end market and geography across all of our businesses.”
“Net sales in PSG increased primarily due to selling price increases, which impacted Net sales by a mid-single digit percentage.”
Breaks if: YoY revenue growth falls below 3% in FY26
Overall, SHW's outlook remains cautiously optimistic over the next 1 to 3 years, with attention needed on execution and market conditions. Not investment advice.
