SHERWIN-WILLIAMS CO. $146 - New York symbol SHW

SHERWIN-WILLIAMS CO. $146 (New York symbol SHW; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 102.6 million; Market cap: $15.0 billion; Price-to-sales ratio: 1.6; Dividend yield: 1.1%; TSINetwork Rating: Above Average; www. sherwin-williams.com) earned $227.8 million in the quarter ended June 30, 2012, up 27.2% from $179.1 million a year earlier. Earnings per share rose 30.7%, to $2.17 from $1.66, on fewer shares outstanding. Sales rose 9.3%, to $2.6 billion from $2.4 billion.

Demand for the company’s paints has moved up as the U.S. housing market continues to recover. That’s making it easier for Sherwin to increase its prices to cover its rising raw material costs (the company uses oil to make its paint). However, the stock has gained 92% in the past year, and now trades at a high 22.9 times Sherwin’s projected 2012 earnings of $6.38 a share.

Sherwin-Williams is a hold.

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