Sherwin-Williams Earnings: Architectural Volumes Remain Resilient Despite Soft Housing Market

Wide-moat Sherwin-Williams reported solid fourth-quarter results that came with few surprises. Sherwin’s paint stores group continued to perform well as residential repaint drove volume growth in the quarter. While architectural paint markets remained constrained due to a slowdown in new and existing home sales in 2023, we expect improvements in 2024, driven by residential repaint and new residential construction. We are maintaining our fair value estimate of $214 per share.