Is Sherwin-Williams Stock Underperforming the S&P 500?

The Sherwin-Williams Company (SHW), based in Cleveland, Ohio, manufactures paints, coatings, specialty finishing products, architectural paints, protective coatings, automotive refinishing solutions, wood finishes, adhesives, and a wide range of surface treatment products.

With a market cap of approximately $72.7 billion, Sherwin-Williams comfortably sits in the “large cap” league, a club reserved for companies worth more than $10 billion. This scale has helped the company spread its footprint across international markets and establish a presence on multiple continents.

However, its stock has struggled to keep pace lately. SHW stock is currently trading 22.8% below its 52-week high of $379.65 reached in August 2025. Over the last three months, its shares dropped 17.7%. The S&P 500 Index ($SPX) gained 10.6% during the same period, widening the performance gap considerably.

The comparison looks even starker over a longer horizon. SHW stock fell 17.6% over the past 52 weeks. The S&P 500 has climbed 28.2% during that stretch. The trend has not improved in 2026 either with SHW stock slipping 9.6% year-to-date (YTD). On the contrary, the index advanced 11.2% over the same period.

The charts have not offered much comfort either. Shares of Sherwin-Williams have been trading below its 50-day moving average of $319.09 and its 200-day moving average of $338.08 since early May, reflecting that sellers still hold the upper hand.

Investors gave the stock a chilly reception on April 28 following the release of Q1 FY2026 results. Shares fell about 3.5% despite respectable earnings beat. Revenue reached $5.67 billion, topping expectations of $5.56 billion and increasing 6.8% year over year. Adjusted EPS came in at $2.35, ahead of the $2.28 estimate and 4.4% higher than a year earlier.

However, management pointed to elevated mortgage rates as a major hurdle for the housing market. Even so, Sherwin-Williams expects low to mid-single digit revenue growth for the full year. Management also reaffirmed its full year 2026 earnings outlook with a midpoint forecast of $11.70 per share. 

The guidance may not seem enough, though it suggests the company continues to lean on strong brands and deep channel relationships to navigate a challenging business environment.

For additional perspective, Sherwin-Williams’s rival Ecolab Inc. (ECL) has held up far better. Its shares have declined 3.4% over the past 52 weeks and slipped 2.4% YTD. Sherwin-Williams has clearly carried more bruises from the recent market cycle. 

Wall Street has not given up on Sherwin-Williams despite the stock's recent struggles. Among 23 analysts tracking the company, the overall rating remains at “Moderate Buy,” suggesting many still see value beneath the surface. 

The average price target of $381.79 points to upside potential of 30.3% from current levels, indicating analysts expect the company to regain its footing as market conditions gradually improve.