What Happened?

Shares of paint and coating manufacturer Sherwin-Williams (NYSE: SHW) jumped 3.9% in the morning session after the company reported third-quarter financial results that exceeded Wall Street's expectations for both revenue and earnings. The paint and coatings maker announced that its revenue rose 3.2% year on year to $6.36 billion, surpassing forecasts of $6.2 billion. Adjusted earnings per share came in at $3.59, which was also ahead of the $3.44 analysts had estimated. Alongside the quarterly results, Sherwin-Williams reiterated its full-year adjusted earnings guidance. The strong report suggested effective cost management and robust demand for its products, pushing the stock higher.

After the initial pop the shares cooled down to $349.53, up 4% from previous close.

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What Is The Market Telling Us

Sherwin-Williams’s shares are not very volatile and have only had 2 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 5 months ago when the stock dropped 5.6% on the news that the major indices pulled back (Nasdaq -1.3%, S&P 500 -1.1%) as Israel carried out significant strikes on Iranian nuclear and military sites, dramatically escalating fears of a broader conflict in the Middle East. This development has sent crude oil prices surging, as investors fear potential disruptions to global oil supply and a wider regional conflict. The conflict has intensified investor anxiety, compounding existing market volatility, especially in risk assets like stocks, and prompting a pronounced shift toward safe-haven assets.

Sherwin-Williams is up 4.9% since the beginning of the year, but at $349.53 per share, it is still trading 12.6% below its 52-week high of $399.71 from November 2024. Investors who bought $1,000 worth of Sherwin-Williams’s shares 5 years ago would now be looking at an investment worth $1,545.

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