SHW

A month has gone by since the last earnings report for Sherwin-Williams (SHW). Shares have added about 1.4% in that time frame, underperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Sherwin-Williams due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Sherwin-Williams reported second-quarter 2026 adjusted earnings of $3.70 per share, up 9.5% year over year. The figure surpassed the Zacks Consensus Estimate of $3.56 by 3.9%.Revenues increased 7.5% year over year to $6.79 billion and beat the consensus mark of $6.62 billion by 2.6%. Growth across all three reportable segments, including contributions from the Suvinil acquisition, supported results.Selling, general and administrative expenses increased to $2.1 billion from $2.01 billion. As a percentage of sales, SG&A expenses improved to 31% from 31.9%. Higher employee-related costs, expenses related to the Suvinil acquisition and costs associated with the company’s new headquarters and technology center affected the quarter. Paint Stores Group sales increased 5.1% year over year to $3.89 billion. The improvement reflected mid-single-digit selling price increases and low-single-digit volume growth. Paint Stores Group same-store sales rose 4.2%.Sales rose across all professional customer markets, led by double-digit growth in protective and marine, high-single-digit growth in commercial and mid-single-digit growth in residential repaint.Paint Stores Group profit rose 4.5% to $957.6 million from $916.5 million.Consumer Brands Group sales jumped 21.5% to $983.5 million from $809.4 million. Growth was driven primarily by the Suvinil acquisition, increased sales in North America and a 1.6% favorable foreign currency translation impact. Consumer Brands Group profit climbed 29.7% to $212.9 million. The increase reflected higher sales, favorable product mix, supply-chain efficiencies and currency transaction benefits, partly offset by raw material inflation and incremental Suvinil-related SG&A costs. Reported margin improved to 21.6% from 20.3%.Performance Coatings Group sales advanced 6.3% to $1.91 billion. Low-single-digit gains in price and volume, along with a 2% favorable currency translation impact, aided results. General Industrial and Automotive Refinish recorded high-single-digit growth, while Packaging, Industrial Wood and Coil posted mid-single-digit gains. Performance Coatings Group profit increased 11.5% to $273.3 million. Higher sales more than offset raw material and employee-related cost increases. Reported segment margin expanded to 14.3% from 13.6%. Sherwin-Williams generated $1.49 billion in net operating cash flow during the first six months of 2026. The company returned $2.23 billion to shareholders through dividends and repurchases of 5.6 million common shares.As of June 30, 2026, cash and cash equivalents were $293.5 million. Short-term borrowings totaled $2.25 billion, while long-term debt was $8.33 billion. The company had authorization to repurchase 24 million shares remaining through open-market transactions. For the third quarter of 2026, Sherwin-Williams expects consolidated net sales to increase by a mid to high-single-digit percentage year over year. Management expects demand softness to continue during the second half based on customer sentiment and the leading indicators it monitors.For full-year 2026, the company raised its net sales growth forecast in the mid- to high-single-digit range. It also increased reported earnings guidance to $10.92-$11.32 per share from $10.70-$11.10.Adjusted earnings are projected at $11.80-$12.20 per share, up from the prior guidance of $11.50-$11.90. It turns out, fresh estimates have trended upward during the past month. At this time, Sherwin-Williams has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a score of D on the value side, putting it in the bottom 40% for value investors. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Sherwin-Williams has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Sherwin-Williams Company (SHW) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. Sherwin-Williams stock has delivered a 36.2% total return over the past three years, yet current checks suggest it no longer stands out as a clear bargain, with intrinsic value estimates and market multiples pointing to only limited room either side of the current price. A 36.2% return over three years indicates Sherwin-Williams has already rewarded patient shareholders, which can make fresh upside harder to justify without stronger earnings or cash flow. The company’s ability to convert earnings into steady cash flow can support its intrinsic value, while any pressure on margins or higher capital needs may weigh on what investors are willing to pay. The stock screens as expensive on broader checks, with 0 of 6 valuation tests identifying it as a clear bargain. The issue now is whether Sherwin-Williams at around US$359 already reflects its intrinsic value, or if there is still a valuation gap worth taking seriously. Find out why Sherwin-Williams' -0.7% return over the last year is lagging behind its peers. The Discounted Cash Flow (DCF) model here projects what Sherwin-Williams could generate in future cash and brings those figures back to today’s dollars. Sherwin-Williams currently produces about $3.0b of free cash flow over the latest twelve months, and the model assumes those cash flows continue to grow rather than shrink. On those projections, the 2 Stage Free Cash Flow to Equity model points to an intrinsic value of about $348 per share. Set against the current share price near $359, that implies Sherwin-Williams trades at about a 3.2% premium to this intrinsic value estimate. The gap is small, which suggests the market price already reflects much of the value of its cash generation under these assumptions. On this DCF view, Sherwin-Williams stock comes out as roughly fairly valued with only a slight tilt toward being overvalued. Sherwin-Williams is fairly valued according to our Discounted Cash Flow (DCF), but this can change at a moment's notice. Track the value in your watchlist or portfolio and be alerted on when to act. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Sherwin-Williams. P/E can be a useful way to look at Sherwin-Williams because earnings are a key focus for many investors in established companies. On this measure, Sherwin-Williams trades on a P/E of about 32.2x, which is above the Chemicals industry average of roughly 27.8x and higher than the peer group average of about 30.6x. The Fair P/E Ratio model, which blends factors such as growth expectations, margins, size and risk, points to a figure closer to 21.6x for Sherwin-Williams. That is below the current 32.2x, so the stock appears to carry a premium that is not fully explained by what this framework assumes the company should command. On the P/E multiple, Sherwin-Williams stock currently screens as overvalued relative to both its tailored fair ratio and broader peers. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Sherwin-Williams pick up where this valuation puzzle leaves off by explaining which assumptions about Sherwin-Williams' future growth, margins and earnings would need to hold for the stock to be worth materially more or less than today's price. These narratives are available on the company's Community page. Rather than relying on a single multiple or model output, each narrative sets out its own fair value assumptions, allowing you to compare them with actual results over time. The Sherwin-Williams community is split between a store-led growth story and concern that housing and cost pressures keep the stock stretched. Bull case: 8% undervalued Read the full Bull Case to see why Sherwin-Williams could be undervalued Bear case: 6% overvalued Read the full Bear Case to see why Sherwin-Williams could be overvalued Do you think there's more to the story for Sherwin-Williams? Head over to our Community to see what others are saying! For Sherwin-Williams, the Discounted Cash Flow (DCF) estimate sits only slightly below the current share price, which points to limited upside on cash generation alone. The market-multiple view is less generous and flags the stock as overvalued relative to both industry peers and its tailored fair P/E. Broader valuation checks also sit in the weak bucket, so the burden of proof now rests on Sherwin-Williams delivering the growth and margins implied in today’s premium. The crux for investors is whether store expansion and housing exposure earn enough return to justify that premium or eventually force the valuation to settle closer to the intrinsic value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include SHW. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Masco Corporation MAS delivered a mixed second quarter of 2026. Earnings and margins improved sharply, but sales moved lower.The quarter showed the benefit of pricing, cost savings, tariff refunds and share repurchases. It also showed that demand remains uneven, especially in North America and do-it-yourself paint. Adjusted earnings per share rose 26% year over year to $1.64. That topped the Zacks Consensus Estimate by 26.2%. Masco Corporation price-eps-surprise | Masco Corporation Quote Sales told a different story. Net sales declined 2.9% to $1.99 billion and missed the consensus mark by 4.6%, making the quarter difficult to judge on earnings alone. Adjusted operating profit increased 17%, while adjusted operating margin expanded 410 basis points to 24.2%. Adjusted gross margin also improved to 43.8%.The margin gain needs context. Masco recognized a roughly $95 million net benefit from International Emergency Economic Powers Act tariff refunds, so investors should not treat the full improvement as structural. Pricing and cost initiatives helped, but the refund was a major driver. Masco’s portfolio remains anchored by Delta, Hansgrohe, Behr and other established brands across plumbing and architectural coatings. That brand base matters because much of the company’s demand is tied to repair and remodel activity rather than new construction.International plumbing sales rose 4% in local currency, while professional paint sales increased in the mid-single digits. New Delta, Brizo and Newport Brass collections, e-commerce gains and customer-service recognition support share retention during choppy demand.The Home Depot HD remains a relevant reference point for investors tracking repair-and-remodel spending. Sherwin-Williams SHW also offers a useful comparison for paint and coatings demand, particularly as Masco balances weakness in do-it-yourself paint with growth in the professional channel. North American sales fell 5% in local currency during the quarter. Lower volume partly offset the benefit from pricing and cost savings.Decorative Architectural Products also faced pressure. Do-it-yourself paint sales fell in the high-single-digit range, hurt by weak industry conditions and a customer transition in primers and applicators. Masco is still dealing with elevated commodity costs, employee-related inflation and tariff costs outside the refund benefit. Continued reliance on pricing could become harder if consumer demand stays soft. The bottom line is that Masco’s second-quarter earnings quality was mixed. Profitability improved, but the sales decline, volume pressure and temporary tariff-refund benefit limit how much investors should extrapolate from the margin expansion.MAS currently carries a Zacks Rank #3 (Hold). That rank points to a balanced near-term view rather than a clearly bullish or bearish signal. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The stock’s Style Scores are stronger. Masco has a VGM Score of A, including a Momentum Score of A and Value Score and Growth Score of B each. These scores indicate favorable style characteristics, but the Hold rank keeps the near-term stance measured as demand-related uncertainty persists. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Masco Corporation (MAS) : Free Stock Analysis Report The Sherwin-Williams Company (SHW) : Free Stock Analysis Report The Home Depot, Inc. (HD) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Sherwin-Williams (SHW) came out with quarterly earnings of $3.7 per share, beating the Zacks Consensus Estimate of $3.56 per share. This compares to earnings of $3.38 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +3.93%. A quarter ago, it was expected that this paint and coatings maker would post earnings of $2.24 per share when it actually produced earnings of $2.35, delivering a surprise of +4.91%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Sherwin-Williams, which belongs to the Zacks Chemical - Specialty industry, posted revenues of $6.79 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.58%. This compares to year-ago revenues of $6.31 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Sherwin-Williams shares have added about 1% since the beginning of the year versus the S&P 500's gain of 8.3%. While Sherwin-Williams has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Sherwin-Williams was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.58 on $6.64 billion in revenues for the coming quarter and $11.78 on $24.69 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Chemical - Specialty is currently in the top 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Orion (OEC), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This producer of the chemcial additive carbon black is expected to post quarterly earnings of $0.11 per share in its upcoming report, which represents a year-over-year change of -65.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Orion's revenues are expected to be $474.5 million, up 1.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Sherwin-Williams Company (SHW) : Free Stock Analysis Report Orion S.A. (OEC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The Sherwin-Williams Company SHW reported second-quarter 2026 adjusted earnings of $3.70 per share, up 9.5% year over year. The figure surpassed the Zacks Consensus Estimate of $3.56 by 3.9%. Revenues increased 7.5% year over year to $6.79 billion and beat the consensus mark of $6.62 billion by 2.6%. Growth across all three reportable segments, including contributions from the Suvinil acquisition, supported results. Selling, general and administrative expenses increased to $2.10 billion from $2.01 billion. As a percentage of sales, SG&A expenses improved to 31% from 31.9%. Higher employee-related costs, expenses related to Suvinil acquisition and costs associated with the company’s new headquarters and technology center affected the quarter. The Sherwin-Williams Company price-consensus-eps-surprise-chart | The Sherwin-Williams Company Quote Paint Stores Group sales increased 5.1% year over year to $3.89 billion. The improvement reflected mid-single-digit selling price increases and low-single-digit volume growth. Paint Stores Group same-store sales rose 4.2%.Sales rose across all professional customer markets, led by double-digit growth in protective and marine, high-single-digit growth in commercial and mid-single-digit growth in residential repaint.Paint Stores Group profit rose 4.5% to $957.6 million from $916.5 million. Consumer Brands Group sales jumped 21.5% to $983.5 million from $809.4 million. Growth was driven primarily by the Suvinil acquisition, increased sales in North America and a 1.6% favorable foreign currency translation impact. Consumer Brands Group profit climbed 29.7% to $212.9 million. The increase reflected higher sales, favorable product mix, supply-chain efficiencies and currency transaction benefits, partly offset by raw material inflation and incremental Suvinil-related SG&A costs. Reported margin improved to 21.6% from 20.3%. Performance Coatings Group sales advanced 6.3% to $1.91 billion. Low-single-digit gains in price and volume, along with a 2% favorable currency translation impact, aided results. General Industrial and Automotive Refinish recorded high-single-digit growth, while Packaging, Industrial Wood and Coil posted mid-single-digit gains. Performance Coatings Group profit increased 11.5% to $273.3 million. Higher sales more than offset raw material and employee-related cost increases. Reported segment margin expanded to 14.3% from 13.6%. Sherwin-Williams generated $1.49 billion in net operating cash flow during the first six months of 2026. The company returned $2.23 billion to shareholders through dividends and repurchases of 5.6 million common shares. As of June 30, 2026, cash and cash equivalents were $293.5 million. Short-term borrowings totaled $2.25 billion, while long-term debt was $8.33 billion. The company had authorization to repurchase 24 million shares remaining through open-market transactions. For the third quarter of 2026, Sherwin-Williams expects consolidated net sales to increase by a mid to high-single-digit percentage year over year. Management expects demand softness to continue during the second half based on customer sentiment and the leading indicators it monitors. For full-year 2026, the company raised its net sales growth forecast in the mid- to high-single-digit range. It also increased reported earnings guidance to $10.92-$11.32 per share from $10.70-$11.10. Adjusted earnings are projected at $11.80-$12.20 per share, up from the prior guidance of $11.50-$11.90. Shares of Sherwin-Williams have lost 2.8% over the past year against the industry’s 2.8% growth. Image Source: Zacks Investment Research SHW currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the basic materials space are Carpenter Technology Corporation CRS, Kronos Worldwide, Inc. KRO and Avient Corporation AVNT. Carpenter Technology is slated to report fourth-quarter fiscal 2026 results on July 30. The Zacks Consensus Estimate for earnings is pegged at $10.58 per share, indicating a 41.44% year-over-year improvement. CRS sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here. Kronos is scheduled to report second-quarter 2026 results on Aug. 5. The Zacks Consensus Estimate for KRO’s second-quarter loss per share is pegged at 33 cents, indicating a 65.63% year-over-year growth. KRO flaunts a Zacks Rank #1 at present. Avient is slated to report second-quarter 2026 results on Aug. 6. The consensus estimate for AVNT’s earnings per share is pegged at $3.08. AVNT presently carries a Zacks Rank #2. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Sherwin-Williams Company (SHW) : Free Stock Analysis Report Carpenter Technology Corporation (CRS) : Free Stock Analysis Report Kronos Worldwide Inc (KRO) : Free Stock Analysis Report Avient Corporation (AVNT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Stocks finished mixed on Tuesday as investors looked past another weak session for technology shares, with strong earnings expectations and lower oil prices helping lift the broader market. The Dow Jones Industrial Average led the way, climbing 537 points, or 1%, to close at 52,747. The S&P 500 added 16 points, or 0.2%, to finish at 7,429, while the Nasdaq slipped 55 points, or 0.2%, to 24,877 as chip stocks remained under pressure. Technology continued to lag, with the S&P Technology Select Sector Index falling 1.9% on the day and extending its five-day decline to 4.6%, reflecting ongoing weakness in semiconductor names. Investors also kept a close eye on the Federal Reserve as policymakers began their two-day policy meeting. While markets largely expect the central bank to leave interest rates unchanged when its decision is announced Wednesday, uncertainty around the Fed's next move has made this one of the most closely watched meetings in recent memory. Attention is also turning to a busy stretch of corporate earnings. After Tuesday's closing bell, investors were awaiting results from Visa and Ford. Wednesday promises an even bigger slate, with Procter & Gamble, General Dynamics and Boston Scientific reporting before the open, followed by heavyweight technology companies Microsoft, Meta Platforms and Qualcomm after the close. Starbucks, Fortinet, Robinhood, Carvana and Chipotle are also set to report Wednesday evening. For now, falling oil prices and optimism around earnings helped offset the drag from technology stocks, leaving the Dow and S&P 500 in positive territory even as the Nasdaq ended slightly lower. First Phosphate Corp. (CSE:PHOS, OTCQX:FRSPF, FRA:KD0, OTC:FPHOY) has maintained an Outperform rating from Noble Capital Markets, which cited the company's strong funding position, debt-free balance sheet and strategic role in the North American lithium iron phosphate battery supply chain. 374Water Inc (NASDAQ:SCWO, FRA:8LL) has begun Phase 3 of its AirSCWO deployment in Minnesota as the state continues evaluating the company's technology for destroying PFAS-contaminated waste under a $600,000 pilot contract. Royal Road Minerals Ltd (TSX-V:RYR, OTC:RRDMF, FRA:RLU) has raised $7.31 million through a brokered share offering to fund drilling across its exploration portfolio in Colombia. Fox Tungsten Ltd (TSX-V:FOXT, OTC:HPYCF, FRA:1HC) said drilling at its fully funded 20,000-metre program in British Columbia has intersected visible scheelite mineralization in multiple target areas, suggesting the mineralized system is expanding. Replimune (NASDAQ: REPL) shares plunged nearly 31% after FDA reviewers questioned the effectiveness of its lead cancer therapy RP1 ahead of an advisory committee meeting, extending the stock's five-day decline to about 47%. Royal Caribbean Cruises Ltd (NYSE:RCL) shares rose 4.4% after the cruise operator beat second-quarter profit estimates and raised its full-year outlook on strong demand and improved cost efficiencies. Hilton Worldwide Holdings (NYSE: HLT) raised its full-year profit forecast but saw shares fall 3.4% after issuing weaker-than-expected third-quarter guidance. PayPal Holdings (NASDAQ: PYPL) shares climbed nearly 4% after the payments company reported better-than-expected second-quarter earnings and revenue and increased its full-year non-GAAP guidance. 374Water Inc (NASDAQ:SCWO, FRA:8LL) has begun Phase 3 of its AirSCWO deployment in Minnesota as the state continues evaluating the company's technology for destroying PFAS-contaminated waste under a $600,000 pilot contract. United Parcel Service (NYSE: UPS) shares fell 6% after investors looked past better-than-expected second-quarter results and a higher full-year outlook to focus on weaker domestic expectations, lower international profitability and restructuring costs. GSK (LSE: GSK, NYSE: GSK) shares climbed to a three-month high after the pharmaceutical company beat second-quarter revenue and earnings expectations while increasing investment in its drug pipeline. Coca-Cola (NYSE: KO) shares gained nearly 7% after the beverage giant reported stronger-than-expected second-quarter earnings and raised its full-year guidance. Boeing Co (NYSE:BA, XETRA:BCO) reported a wider-than-expected quarterly loss despite beating revenue estimates as higher commercial aircraft deliveries helped lift its backlog to a record $715 billion. Navitas Semiconductor (NASDAQ: NVTS) shares fell about 10% after investors focused on the company's large GAAP net loss despite second-quarter revenue exceeding Wall Street expectations. Applied Digital (NASDAQ: APLD) reported fourth-quarter revenue that surged 407% year over year and posted an unexpected adjusted profit as it continues its transition to an AI infrastructure company. Chris Beauchamp, chief market analyst at IG, said another round of selling in tech stocks is keeping pressure on global markets, although the chip sector pullback remains relatively contained. "Investors continue to dump AI and chip stocks at a prodigious rate. The euphoria of May and June is long gone, but the selloff is still mostly limited to these tech sectors," Beauchamp commented. "Oil’s ongoing slump provides a cushion for a broad swathe of other sectors, but it is unlikely that these can remain immune for long. Rising CDS prices for tech heavyweights are a sign that this has the potential to turn into something quite nasty, and then in that eventuality few stocks will be able to remain immune.” The Nasdaq 100 has officially entered correction territory, falling 10% from its record high as the semiconductor selloff punishes the tech-heavy index. Meanwhile, investors reacted to a fresh batch of softer-than-expected US economic data. Private-sector hiring continued to lose momentum, with ADP data showing payroll growth averaged just 15,000 jobs per week through July 11, down from 35,750 in early May. Elsewhere, consumer confidence disappointed, slipping to 90.8 in July versus expectations of 92.4, while the U.S. goods trade deficit widened to $101.5 billion in June, slightly above forecasts of a $100 billion deficit. Wall Street's sweeping semiconductor sell-off deepened in early Tuesday trading, with many investors seeming to move into the Dow's blue-chip names. The Dow gained 318 points, or 0.6%, while the Nasdaq Composite tumbled 1.2% and the S&P 500 slipped 0.2%. The Nasdaq 100's biggest fallers were mostly semiconductors, with Western Digital, Lumentum, Seagate and SanDisk all plunging more than 11%. Micron, Lam Research, Marvell, AMD, Arm and Applied Materials lost 7-10%, as concerns over AI financing and Chinese competition intensified. On the Dow, paints maker Sherwin-Williams and drinks maker Coca-Cola were top of early leaderboard, jumping 7% and 6.2% after impressing with earnings. Amgen, Salesforce and Home Depot were also well bid. Among the pre-market reporters, PayPal rose 4.2%, Boeing gained 3.7% and Royal Caribbean added 2.4% following their results. UPS sank 6%, however, while Hilton dropped 3.5% as investors gave their updates a cooler reception. Wall Street is heading for another mixed session on Tuesday, with blue-chip gains offset by concerns about AI spending and Chinese competition weighing on some technology stocks. Dow Jones futures were up 317 points, or 0.6%, but the Nasdaq has been called 1% lower, with S&P 500 futures down 0.1%. Chip stocks are expected to remain under pressure, with Nvidia down another 1% before the bell after dropping nearly 5% at the start of the week. Yesterday, the Dow climbed 263 points or 0.5% to 52,210, while the S&P 500 was little changed, adding just 1.2 points to close at 7,413, while the Nasdaq fell 0.2% to 24,932. Falling oil prices have provided some relief, leading to easing pressure from the bond market. WTI crude has fallen another 1.7% to $81.19 a barrel after President Donald Trump said there was "a good chance" of reaching a deal with Tehran. Market watchers said this was shifting the focus from geopolitics towards the AI trade, where many investors seem increasingly concerned about the financing required for AI infrastructure and how long it will take for the spending to deliver returns. Reports that Nvidia could provide $250 billion in financing guarantees for OpenAI's planned Ohio data center have added to those concerns. Chinese progress in developing chipmaking equipment has also raised questions about the competitive position of Western semiconductor companies. "Investors are running out of patience to see these investments pay off," said market analyst Kathleen Brooks at XTB. This comes in one of the busiest weeks of the year, with the Federal Reserve beginning its two-day meeting today and several major technology companies due to report this week. "Investors are becoming increasingly selective this earnings season, with strong revenue growth no longer enough to satisfy markets unless accompanied by evidence that elevated spending is translating into sustainable profitability," said Daniela Hathorn at Capital.com. Coca-Cola, Boeing, S&P Global, UPS, Royal Caribbean, Sherwin-Williams, Hilton and PayPal report before the bell. Visa, KLA, Seagate Technology, Mondelez, Ford and NXP Semiconductors follow after the close. The Fed will announce its latest policy decision on Wednesday.

This article first appeared on GuruFocus. Consolidated Sales Growth: High single-digit percentage, including a low single-digit contribution from the Suvinil acquisition. Gross Margin: Decreased slightly but increased excluding the dilutive impact of Suvinil. SG&A Expense: Increased by a mid-single-digit percentage, decreased 90 basis points as a percent of sales. Adjusted Diluted Net Income Per Share: Increased approximately 10%. Adjusted EBITDA: Grew by 10.5% to $1.5 billion; margin expanded 60 basis points to 21.5% of sales. Net Operating Cash: Improved by 21% or $235 million. Free Cash Flow Conversion: 86%. Shareholder Returns: $1.5 billion returned through share repurchases and dividends. Net Debt to Adjusted EBITDA Ratio: 2.4x. Paint Stores Group Sales Growth: Mid-single-digit percentage. Segment Margin for Paint Stores Group: 24.6%. New Store Openings: 45 new stores opened year-to-date; 57 stores closed. Consumer Brands Group Sales Growth: Mid-teens contribution from Suvinil acquisition; mid-single-digit price mix. Performance Coatings Group Sales Growth: Growth in every division and region; price mix and volume both grew by low single digits. Adjusted Segment Margin for Consumer Brands Group: Increased 210 basis points to 24.5%. Adjusted Segment Margin for Performance Coatings Group: Increased 50 basis points. SG&A Decline in Administrative Segment: 9.8% decline. Full Year Sales Guidance: Expected to increase by a mid- to high single-digit percentage. Adjusted EPS Guidance: Expected to be in the range of $11.80 to $12.20 per share. Warning! GuruFocus has detected 11 Warning Signs with NUE. Is SHW fairly valued? Test your thesis with our free DCF calculator. Release Date: July 28, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Sherwin-Williams Co (NYSE:SHW) delivered strong top and bottom line growth in the quarter, with sales exceeding guidance across all three reportable segments. Consolidated sales grew by a high single-digit percentage, driven by strategic execution, new account wins, and prior growth investments. Adjusted EBITDA grew by 10.5% to $1.5 billion, with an adjusted EBITDA margin expansion of 60 basis points to 21.5% of sales. Net operating cash improved by 21%, driven by an increase in net income and working capital being a higher source of cash year-over-year. The company increased its full-year consolidated sales and EPS guidance based on strong first-half performance and momentum into the second half. Reported gross margin decreased slightly due to the dilutive impact of the Suvinil acquisition. SG&A expenses increased by a mid-single-digit percentage, driven by nonannualized Suvinil acquisition costs and higher employee service costs. The new residential market remains challenging, with single-family starts and completions being negative for five of the last six months. DIY demand remains muted, impacting the Consumer Brands Group, despite growth in the Pros Who Paint segment. Raw material inflation remains a concern, with expectations of high single-digit inflation in the second half of the year. Q: Can you explain the rationale behind the mid-quarter bid for Akzo and the subsequent withdrawal? How should we view M&A opportunities moving forward? A: Heidi Petz, President and COO, explained that Sherwin-Williams takes a disciplined approach to capital allocation and M&A. The bid for Akzo was for a premium asset that aligned with their strategy. However, without the desired engagement and considering better uses for shareholder cash, they decided to withdraw. The company remains open to M&A if it aligns with strategic goals and offers value. Q: Can you provide more details on the strong margin improvement in the Consumer Brands segment? A: Benjamin Meisenzahl, CFO, noted that about half of the margin improvement came from core operating performance, with strong sales and flat SG&A. The other half was due to favorable non-operating items. Heidi Petz added that while DIY demand remains muted, the "Pros Who Paint" segment is seeing continued share gains. Q: Why does the second half EPS growth appear smaller despite a significant price increase in September? A: Benjamin Meisenzahl explained that the second half of the previous year had easier comps, and raw material costs are expected to rise. Despite the price increase, these factors contribute to a smaller EPS growth in the second half compared to the first. Q: Are you expecting any volume deterioration in the Paint Stores Group due to rising interest rates? A: Heidi Petz stated that they do not expect material volume changes. The company is focused on taking market share and has seen strong new account activity and share gains, particularly in the residential repaint and protective and marine segments. Q: How does the September price increase compare to historical trends, and will it affect gross margins in the second half? A: Benjamin Meisenzahl indicated that the price increase is expected to follow historical realization trends. The company aims to balance pricing with inflation and maintain customer relationships, which should support gross margins despite rising raw material costs. Q: Can you elaborate on the drivers behind the commercial and protective segments' performance? A: James Jaye highlighted that the commercial segment is benefiting from targeted market share opportunities, while the protective segment is seeing growth from data center and infrastructure build-outs. Heidi Petz added that Sherwin-Williams provides comprehensive solutions that cater to these growing markets. Q: Why was Sherwin-Williams not interested in the number one European decorative business? A: Heidi Petz explained that the market dynamics outside North America do not support the level of capital deployment required for such an acquisition. The company prefers to focus on opportunities that align better with its strategic goals and shareholder value. Q: How is the integration of Suvinil progressing, and what impact has it had on EPS? A: Benjamin Meisenzahl reported that the integration of Suvinil is going well, with additional synergies identified. The acquisition is expected to be a material tailwind to EPS for the year, with ongoing integration activities continuing into early next year. For the complete transcript of the earnings call, please refer to the full earnings call transcript.