SHW Stock Analysis: Buy, Sell, or Hold?

SHW - The Sherwin-Williams Company

RETAIL-BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY
$300.10
-9.08 (-2.94%) ▼
5d: -5.28%
30d: -9.97%
90d: -18.65%
HOLD
MODERATE Confidence
Protect Your SHW Gains
Analysis Updated: May 15, 2026 12:00 AM ET
Earnings: Apr 28, 2026 0d
Smart Money Accumulation

SHW is down 3.6% this week, but smart money is accumulating calls. Top strike: $390 2026-06-18 with 871 OI. Call ratio: 68% View Scanner →

Strength: 3.6/10

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Interactive Price Chart (1 Month)

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💡
Bottom Line:
📊 HOLD: SHW shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.
See Forward Earnings Fair Value & Price Prediction →

Long-Term Wealth Forecast (2031)

Based on Analyst Consensus Growth & Historical Valuation

0% (Stagnation) 50% (Hyper Growth)
EST. PRICE IN 2031
$497.65
Based on 8.5% avg growth
INTRINSIC VALUE TODAY
$309.00
2.9% Margin of Safety

How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 25.0x Exit PE.

In-depth Analysis How we analyze

Valuation Analysis: SHW is currently trading at $300.10, which is considered oversold relative to its 30-day fair value range of $312.78 to $336.82. From a valuation perspective, the stock is trading at a discount (Forward PE: 22.6) compared to its historical average (25.7). Remarkably, the market is currently pricing in an annual earnings decline of 4.1% over the next few years. This pessimistic expectation contrasts with the company's recent 7.5% earnings growth, suggesting potential undervaluation if the company simply maintains stability.

Technical Outlook: Technically, SHW is in a downtrend. The price is currently testing key support at $300.05. A bounce from this level would confirm strength, while a break below could signal further downside.

Market Sentiment: SHW has a weak technical setup (25/100), with bearish trendlines and momentum suggesting caution for short-term entries. Wall Street analysts see significant upside, with an average price target of $381.45 (+27.1%). The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.

Quick Decision Summary

Current Position OVERSOLD
Historical Trading Range $312.78 - $336.82
Company Quality Score 54/100 (HOLD)
Volume Confirmation HIGH
Confidence Score 57.1%

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All Signals

  • BULLISH: Price oversold vs 30-day range
  • BEARISH: Weak technical setup (25/100)
  • BULLISH: High volume confirmation
  • BULLISH: Trading 27.1% below Wall St target ($381.45)
  • CAUTION: 5-day price weakness (-5.3%) - monitor closely

Trading Range Analysis

30-Day Trading Range $312.78 - $336.82
Current vs Trading Range OVERSOLD

Support & Resistance Levels

Support Level $300.05
Resistance Level $328.99
Current Trend Downtrend
Technical data as of May 15, 2026

Fundamental Context

Forward P/E (Next Year Est.) 22.62
Wall Street Target $381.45 (+27.1%)
Revenue Growth (YoY) 6.8%
Earnings Growth (YoY) 7.5%
Profit Margin 10.9%
Valuation Discount vs History -4.1% cheaper
PE vs Historical 22.6 vs 25.7 CHEAP
Market-Implied Price Targets If current PE multiple persists
Implied Growth (YoY): -4.1% (market-implied from PE analysis)
1-Year Target $287.80 (-4%)
2-Year Target $276.00 (-8%)
3-Year Target $264.68 (-12%)
3-Yr Target (if PE normalizes) (PE: 23→26) $300.72 (+0%)
3-Year Scenarios Using analyst projected EPS growth
Bull: (PE: 22.6, Growth: 13.0%) $432.91 (+44%)
Base: (SPY PE: 22.1, Growth: 13.0%) $422.39 (+41%)
Bear: (PE: 18.8, Growth: 13.0%) $359.03 (+20%)
📈 Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (30x PE), but valuation improves significantly next year (23x PE) as earnings recover.
Trailing PE: 29.67 | Current EPS (TTM): $10.42
Bull Case $433.02 (+44%)
Analyst growth 27.3%, PE expands to 32.6
Base Case $393.66 (+31%)
Market implied 27.3%, PE stable at 29.7
Bear Case $210.24 (-30%)
Severe decline -20.0%, PE contracts to 25.2
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡 Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 22.6 to 25.7
Stabilization Target: $340.96 (+13.6%)
PE Expansion Potential: +13.6%
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Last updated: May 18, 2026 5:55 AM ET
Data refreshes hourly during market hours. Next update: 6:55 AM
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Ticker Score Recommendation Change %
Insider Activity (6 Months)
2
Buys
4
Sells
Net
INSIDERS SELLING
Recent Transactions
Ro Khanna SELL 2026-03-23
Bryan J Young SELL 2513 shares 2026-02-24
Ro Khanna BUY 2026-02-24

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