PPG Industries (NYSE: PPG) is a specialty chemicals and products company that provides performance and industrial coatings. PPG sells its entire range of products through company-owned stores, home centers, paint dealers, and independent distributors, as well as directly to customers worldwide. So, the company's business is in a good position to benefit from growth in industrial and auto end-markets. This is what helped it to post decent results in more »
Sherwin-Williams (NYSE: SHW), the owner of popular brand names like Sherwin-Williams, Dutch Boy, Krylon, Minwax, Thomson’s and Water Seal, recently declared its second quarter results. The company missed consensus estimates both on top and bottom lines. What went wrong? And is there any hope going forward? Let's try to find out.
Revenue & earnings
As compared to the year-ago quarter, consolidated net sales increased 5.5% to $2.71 more »
Investors in paintings and coatings company PPG Industries (NYSE: PPG) have enjoyed a nearly 45% rise over the last year, but the stock has remained in a tight $150-$160 range over the last few months. Is this a sign that it’s time to take profits on the stock? Before you rush to hit the sell trigger, you should consider the upside potential in this stock. PPG can move more »
Sherwin-Williams (NYSE: SHW) fell a whopping 8% the other day. So is now a good time to reload your portfolio with the paint giant? The most recent pullback was due to Mexico's Competition Commission's decision to block its acquisition of Comex. At the same time, the company reported a 13% increase in profit for the second quarter, year over year, but both revenue and earnings missed consensus.
After more »
We had yet another week full of important economic data. Everything from retail sales, housing, and inflation was covered on top of the highly anticipated testimony from no other than Ben Bernanke himself. Ben Bernanke emphasized in his second day of Congressional testimony that monetary policy will remain loose for the foreseeable future, a bullish catalyst for a stock market already at all time highs. Within the question and answer more »
Take a look at these companies that reside in the coatings/paints sector within the chemical industry. I will overview two of the largest such manufacturers, along with a past favorite that still has investment value. The premise behind recommending the category is that demand will continue to rise in tandem with a rise in automobile production, as well as overall manufacturing and industrial production.
Here's my discussion on more »
Housing is clearly on the mend. In fact, it is finally starting to realize the kind of bounce one would expect following the worst collapse since the Great Depression. For those tempted to be swayed by the increasing description of the current recovery as a bubble, I present the following chart on single-family new home sales.
The easy money has clearly been made on most of the housing related plays more »
Chemicals are used in almost every industry, making the chemical industry highly sensitive to economic slowdown. In the last year the Eurozone financial crisis and concerns about the U.S. fiscal cliff caused underperformance in this industry. However, as these concerns decrease, the industry is expected to grow by 4.3% this year. Three chemical companies are trying to tap the growing market. Sherwin-Williams (NYSE: SHW) and LyondellBasell (NYSE: LYBmore »)
Dividend Aristocrats (companies consistently raising yield for 25-plus years) are like the perfect little black dress (or LBD in fashionista shorthand) in a wardrobe. An LBD stock is a core holding that you don't have to touch, except maybe to add onto on pullbacks. You can count on increasing dividend income every year and it is always in fashion, yet not faddish.
The do-it-yourself LBD
One Dividend Aristocrat is more »
I'm always looking for industry leaders that are under-performing their peers, and Masco (NYSE: MAS) appears to be just that. Even with the impressive rebound in housing starts over the past two years, Masco has managed to under-perform major peers.
Tell me more
Masco manufactures, sells and installs home-improvement and building products. Its sales avenues include mass merchandisers, hardware stores, home centers and home builders.
While the company does more »
Valspar (NYSE: VAL) was up about 13% for the year in late May, but over the last month the $5.5 billion market cap coatings and paints company has given up all of those gains. The primary culprit for the decline would appear to be the decision to acquire European coatings manufacturer Inver Group. The business is fairly small relative to Valspar, but investors may still be concerned about integration more »
Sherwin-Williams' (NYSE: SHW) recent investor day has sent bullish signals to the market. The optimism is to be seen not only in the company’s story but also in the overall industry. Given the recent news on sluggish improvement in non-residential construction markets (shown by the Architectural Billing Index), many had turned bearish on this industry.
However, Sherwin’s investor day left us with four key takeaways. The strength in more »
Sherwin-Williams (NYSE: SHW) is the largest manufacturer of paints in the United States and has over 3,800 stores in North and South America. The company is dependent on several factors, but the greatest may be the housing market, and new constructions in particular. When examining Sherwin-Williams’ revenue over the years, you can see how revenues rose and fell with the housing bubble, and are beginning to rise again. However more »
Improved prospects in the housing sector isn't good news for just companies in home sales and housing starts, it also means a slew of profits for The Home Depot (NYSE: HD), Lowe's (NYSE: LOW), and Sherwin-Williams (NYSE: SHW).
The firms were hammered down during the recession, but are picking up along with the increase in the number of housing starts. It should be noted that while housing starts more »
With the housing market indicator falling in April (the most recent release), now could be the time to get in on housing sector stocks. The overall picture is positive, to the point where home prices are near their pre-recession levels. All signs point to a "buy" in this sector and now could be your last chance to get in before share prices in the industry soar even higher.
Home prices more »
In the end, numbers are just numbers and while they are an indispensable part of an investor's self-assessment, they do not always reveal the full details. For example, my last month closed with a negligible loss but the truth is, I started the month notably down after two profit warnings on the last day of April. In retrospect, it was a pleasing month and I think there are some more »
Stocks such as Home Depot (NYSE: HD), Lowes (NYSE: LOW), and the Sherwin-Williams Company (NYSE: SHW) usually are cyclical, with increasing earnings as the weather warms. Adding to this trend in today's economy is a housing boom. But will the trend continue? And are Home Depot, Lowes, and the Sherwin-Williams Company likely to be good short-term plays, or strong long-term blue chips?
Looking at the price-performance curve more »
Recently, Barclays held The Chemical ROC Stars Conference. The purpose of the conference was to get a general feeling of where the chemical sector was heading. Different themes were identified from different companies. The three most noticeable themes were:
1) A sustained housing recovery
2) Shale gas boom
3) Declining commodity prices
Steampunk, Exotic, Theatrical Romanticism, Retro Fun, Flirty and Feminine...These don’t jump out as financial buzzwords or technical analysis, but they do describe Sherwin Williams’ (NYSE: SHW) latest trend setting color families. Interior designers, automobile manufacturers, home builders, and clothing designers synergistically play off this trendsetting company creating anticipation every year as fabric and wallpaper companies, furniture and automobile companies flock to market highlighting these latest color trends.
The more »
Housing recovery debate
The housing recovery has been a point of debate for some time. Both residential and non-residential spending have climbed up as depicted by the rising house prices and Architectural Billing Index (ABI). Some believe that the housing market is on its way to a revival after the housing bubble burst in 2006. On the other hand, many believe that the rest of the economy is teetering away more »
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