Sherwin-Williams, the famous paint-selling company, has rewarded investors handsomely over the years and is still poised for further growth. But, the fundamentals suggest that this spectacular run-up may have pushed the company into overvalued territory. The company is in great shape with industry-leading operational efficiency and it may still be a good pick for momentum traders/investors. However, it is out of the range of value investors as the stock is trading above its estimated intrinsic value. Keep reading to find out what makes Sherwin-Williams a good company.
Catalysts For Growth
Sherwin-Williams is positioned to benefit from industry tailwinds. To begin with, there are 137 million homes in the United States which have a median age of 41 years. In addition, most people are looking to stay put at their current residence for as long as possible. This is especially true for older generations. With approximately 76% of baby boomers owning their own homes, 88% are looking to renovate them and expect to borrow $18,000 on average to do so.
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