Why Sherwin-Williams' Shares Soared 43% Higher in 2021
Sherwin-Williams (NYSE: SHW), the world's largest paint and coatings company, saw its shares rise 43% in 2021, according to data from S&P Global Market Intelligence. The stock began 2020 at $245 a share on Jan. 4 and rose to as high as $353.27 on Dec. 31. While that's a nice jump, the stock has been riding high for a long time, with its shares rising 247.6% over the past five years.
The biggest reason for the stock's growth last year is that demand remains high for the company's products, and despite the rising costs of raw materials, the company has the type of market share that allows it to have pricing power. The company's biggest concern lately, mentioned in its third-quarter earnings call, is that supply issues are causing it to lose sales because it's having a hard time making enough product. That's not good, but it's better than having little demand, and apparently investors see it as a solvable problem in the long run.
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Source Fool.com
