Cleveland, Ohio-based The Sherwin-Williams Company (SHW) develops and distributes paints, coatings, and related products to industrial, commercial and retail customers. With a market cap of $83.5 billion, Sherwin-Williams operates through Paint Stores Group (PSG), Consumer Brands Group (CBG), and Performance Coatings Group (PCG) segments.

The chemicals giant is expected to announce its first-quarter results before the markets open on Tuesday, Apr. 29. Ahead of the event, analysts expect SHW to deliver adjusted earnings of $2.23 per share, up 2.8% from $2.17 per share reported in the year-ago quarter. While the company has missed the Street’s bottom-line estimates twice over the past four quarters, it has surpassed the expectations on two other occasions.

For the full fiscal 2025, SHW’s adjusted EPS is expected to increase from $11.33 in fiscal 2024 to $12, representing an increase of 5.9%. Furthermore, its earnings are expected to jump 11.4% year-over-year to $13.37 in fiscal 2026.

Sherwin-Williams’ stock prices have observed a marginal 67 bps uptick over the past 52 weeks, notably outperforming the Materials Select Sector SPDR Fund’s (XLB) 15.3% decline and the S&P 500 Index’s ($SPX) 1.4% dip during the same time frame.

SHW stock price observed a 1.4% uptick after the release of its Q4 results on Jan. 30. While its CBG and PCG segments observed a decline in revenues, SHW’s PSG segment delivered a 3.4% year-over-year growth in net sales to more than $3 billion. The company’s overall topline inched up by a modest 86 bps to $5.3 billion, which missed the Street’s expectations. On a more positive note, the company observed notable margin expansion across segments, leading to a 15.5% increase in adjusted EPS to $2.09, exceeding the consensus estimates by approximately 1%.

Due to poor industry demand, Sherwin-Williams’ topline performance remained weak throughout 2024. Moving into fiscal 2025, the company expects to deliver above-market sales growth. However, industry demand is anticipated to remain soft throughout 2025 and may not revive in 2026 either. As a result, the company expects its FY 2025 net sales to grow by a low single digit. On the brighter side, Sherwin-Williams plans to cut costs and focus on efficiency, which may lead to modest margin expansion.

The consensus opinion on SHW stock is moderately bullish, with an overall “Moderate Buy” rating. Among the 25 analysts covering the stock, 14 recommend “Strong Buy,” two suggest “Moderate Buy,” eight advise “Hold,” and one advocates a “Moderate Sell” rating. Its mean price target of $393.50 represents an 18.5% upside potential from current price levels.