Sherwin-Williams Stock Sees Boost After Strong Earnings Forecast

The Sherwin-Williams Company (SHW) is a leading manufacturer and seller of paints, coatings, and related products. With over 5,400 company-owned stores across more than 120 countries, it operates some of the most well-known brands in the industry.

Despite being a global leader, SHW stock has underperformed the broader market over the past year, with a decline of 1.9% compared to the S&P 500 Index's gain of 20.6%. However, on July 28th, the company raised its adjusted earnings per share (EPS) forecast for 2026 and upgraded expected sales growth, sending shares up by 8.3%.

The stronger outlook was supported by successful price increases, with Q2 2026 net sales rising 7.5% to $6.79 billion and adjusted EPS reaching $3.70. The company also announced an 8% price increase at the Paint Stores Group effective September 1, aimed at offsetting high raw-material inflation and higher energy, logistics, and packaging costs.

Analysts expect Sherwin-Williams' adjusted EPS to grow 5.7% year-over-year to $12.08 for the fiscal year ending in December 2026. The company has a promising earnings surprise history, beating consensus estimates in each of the last four quarters. Among the 25 analysts covering the stock, the consensus rating is 'Moderate Buy', based on 12 'Strong Buy' ratings and one 'Neutral' rating.

UBS analyst Joshua Spector raised Sherwin-Williams’ price target to $390 while maintaining a ‘Neutral’ rating in July. The mean price target of $388.59 represents an 8% premium to SHW’s current price levels, with the Street-high price target of $420 suggesting a potential upside of 16.7%.