Sherwin-Williams on the road to further growth: gaining more market share with new opportunities
Sherwin-Williams $SHW+1.2%, a global leader in the manufacture, distribution and sale of coatings, expects to increase its sales by more than 4% next year, bringing its total revenue to approximately $24.3 billion. This growth is being driven primarily by expansion in the US market, where the company continues to gain increasing share through new opportunities and competitor departures.
The exit of competitors brings new opportunities
A significant factor driving $SHW'+1.2%s growth is the exit of competitors from the market. In early 2024, Kelly-Moore Paints ceased operations and another major player, PPG Industries, withdrew from the architectural coatings business in North America. This situation opens up new opportunities for $SHW+1.2%, with analysts estimating that these changes could generate nearly $2 billion in revenue for the company.
Mizuho analyst John Roberts points out that one of the main reasons customers prefer $SHW+1.2% is the convenience of shopping at its large and well-stocked stores. The company's extensive store network allows it to better serve its customers and respond more quickly to their needs, giving it a competitive advantage.
Projected profit growth
In addition to revenue growth ,$SHW+1.2%expects profit growth. Lower manufacturing costs are expected to positively impact margins, leading to a 12% increase in earnings per share, which is expected to reach $12.88 in 2024. This projected earnings growth is a clear signal that the company is succeeding in improving its financial performance even in a challenging competitive environment.
Conclusion: stable growth and strong market position
Despite the challenges in the global market,$SHW+1.2% is proving to be a strong performer with significant growth opportunities. The exit of competitors and the ability to respond effectively to customer needs give the company the opportunity to further expand its operations and strengthen its market share. With revenue and profit growth on the horizon, Sherwin-Williams is profiling itself as a stable investment with great potential for future development.
For a company like that, the stock is rising really nicely. I've already put it on my watchlist and plan to do a deeper analysis👍
I don't like defensive stocks at all, but the appreciation here is very solid.
I like this kind of defensive action. The stock has been solidly up for a long time and you can see that the company is doing well.
It's an interesting style of business. The stock is currently but unfortunately expensive.
For a paint manufacturer, this is a very impressive result in recent years. I'm glad these companies are proving to the market and especially to novice investors that it's not all about the top 10 companies.