4 Stocks To Ride The HOT Housing Market In November

The Sherwin-Williams Company (SHW - Get Rating)

Founded in 1866, SHW is a global leader in the manufacture, development, distribution, and sale of paint, coatings, and related products primarily in North and South America. SHW’s products are sold exclusively through a chain of more than 4,900 company-operated stores and facilities. It operates through the following segments – The Americas Group, Consumer Brands Group, Performance Coatings Group, and Administrative.

SHW is on an expansion spree lately as it plans to invest a minimum of $600 million to build its new global headquarters in downtown Cleveland of approximately 1-million-square-feet in size, and a new R&D center in Brecksville that will be approximately 500,000-square-feet in size to serve as the corporate anchor for a new mixed-use development project. Moreover, SHW remains committed to expand its retail operations and is focused on capturing a larger share of its end-markets. The company plans to open around 50 new stores in 2020.

Temporary store closures as a result of the pandemic impacted retail sales this year. However, in its most recent third quarter results, consolidated net sales increased 5.2% year-over-year to $5.1 billion. The increase was primarily driven by 23.5% higher sales in the Consumer Brands segment as the company witnessed strong demand for architectural coatings and architectural DIY (Do It Yourself) paint in North America. This was able to offset some of the negative impact of lower revenues in the other units due to weakened manufacturing and industrial output.

EPS for the quarter came in at $7.66, compared to $6.16 per share in the year-ago quarter. Continued and unprecedented strength in its DIY business, solid demand across residential repaint, and improving demand in industrial coatings businesses is likely to drive the company’s favorable sales momentum in the near future. Hence, analysts expect current year EPS to grow 13% year-over-year.

SHW closed yesterday’s trading session at $692.09, with a year-to-date gain of 19.4%. The stock is presently trading just 4.7% below its all-time high of $725.91 and is up more than 32% in the past six months.

SHW is rated “Strong Buy” in our POWR Ratings system, consistent with its insulated business model. It also has an “A” for Trade Grade, Buy & Hold Grade, and Industry Rank, and a “B” in Peer Grade. It is also ranked #1 out of 69 stocks in the Home Improvement & Goods industry.

Whirlpool Corporation (WHR - Get Rating)

WHR manufactures and markets home appliances and related products worldwide. The company’s principal products include laundry appliances, refrigerators and freezers, cooking appliances, dishwashers, mixers, and other portable household appliances. It operates through four segments – North America, Europe, the Middle East, and Africa (EMEA), Latin America, and Asia.

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Disclaimer: Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice.

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