Sherwin-Williams: A Great Company With An Overpriced Stock
- The company’s shares have surged upward in the last several years to all time highs and insiders continue to sell large amounts of shares.
- Much of SHW’s sales are derived from the slow-growing North American market where many purchasing decisions are based on discounting rather than brand loyalty.
- The company benefits from the recovery in the U.S. housing market, but also suffers when the housing market turns downward.
- Litigation costs will continue for SHW as public nuisance allegations regarding lead paint sales from years earlier are likely to continue to be brought against the company.