What Happened?

Shares of paint and coating manufacturer Sherwin-Williams (NYSE:SHW) fell 9% in the morning session after the company reported underwhelming third-quarter earnings results, with EBITDA and EPS falling short of Wall Street's estimates. Revenue was also underwhelming and came in approximately in line with expectations, as management called out "choppiness in the demand environment." Overall, this was a softer quarter.

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What The Market Is Telling Us

Sherwin-Williams’s shares are not very volatile and have only had one move greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

Sherwin-Williams is up 19.8% since the beginning of the year, and at $365.31 per share, it is trading close to its 52-week high of $389.39 from October 2024. Investors who bought $1,000 worth of Sherwin-Williams’s shares 5 years ago would now be looking at an investment worth $1,933.

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