The Sherwin-Williams Company (SHW) is the world’s largest paint and coatings manufacturer and is headquartered in Cleveland, Ohio. With a market cap of $86.6 billion, it operates over 5,000 stores and serves customers across more than 120 countries. Its business is divided into three key segments: Paint Stores Group, Consumer Brands Group, and Performance Coatings Group, with well-known brands like Valspar, Krylon, and Minwax under its umbrella. 

The chemicals giant is expected to announce its second-quarter results before the markets open on Tuesday, July 22. Ahead of the event, analysts expect SHW to deliver adjusted earnings of $3.76 per share, up 1.6% from $3.70 per share reported in the year-ago quarter. While the company has surpassed the Street’s bottom-line estimates in three of the past four quarters, it has missed the expectations on another occasion.

For the current year, SHW’s adjusted EPS is expected to increase 3.9% from $11.33 in fiscal 2024 to $11.77. Looking ahead, its earnings are expected to jump 10% year-over-year to $12.95 in fiscal 2026.

Sherwin-Williams shares have soared 15.1% over the past 52 weeks, notably outperforming the S&P 500 Index’s ($SPX) 13.6% rise and the Materials Select Sector SPDR Fund’s (XLB) marginal decline during the same time frame.

Despite reporting a mixed Q1 performance on April 29, Sherwin-Williams shares jumped 4.8%. The company reported net sales of $5.3 billion, down 1.1% year-over-year and below Wall Street expectations, as weaker performance in the Consumer Brands and Performance Coatings segments, driven by soft DIY demand in North America and unfavorable currency impacts, weighed on revenue. 

However, strong gross margin gains and effective cost management helped boost adjusted EPS to $2.25, marking a 3.7% increase from the prior year and beating analyst forecasts by 3.2%, which fueled investor optimism and the stock's rally.

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 $389.18 represents a 13.3% upside potential from current price levels.