Sherwin-Williams Earnings: Residential Repaint Drives Growth Despite Weak Housing Markets

Wide-moat-rated Sherwin-Williams reported strong third-quarter results as a decline in new residential construction was more than offset by gains across Sherwin’s portfolio. Sherwin’s pricing power has been on full display recently as the company continues to realize previous pricing actions while also benefiting from moderating raw material costs. Despite a slowdown in existing home sales and housing starts, Sherwin is still experiencing growth in residential repaint, and we expect this trend to continue through the end of the year. We've increased our fair value estimate to $214 from $211 per share due to time value of money.