Down 12% from its high, should you buy this Dividend Aristocrat on the spur of the moment?

As I expected, Central bank keeps interest rates unchanged The fight against stubborn inflation continues this month. Expectations for interest rate cuts are waning, geopolitical uncertainty installation in the background, dividend stocks It can provide investors with some sense of stability.

dividend aristocrat is a title given to dividend stocks with a strong track record of increasing dividends to shareholders for at least 25 consecutive years. These companies also meet the requirements for membership in the benchmark S&P 500 index. ($SPX)another sign of their relative stability and financial strength.

Here are dividend aristocrats that have just bounced back from 52-week highs and upgraded on the strength of attractive valuations. Should I buy this Dividend Aristocrat at the push? Let's take a closer look here.

About Sherwin-Williams

Founded in 1866 by Henry Sherwin and John Williams, the company is based in Sherwin-Williams, Cleveland. (SHW) A leader in the paint industry. The company is a leading global manufacturer, marketer and retailer of paints, coatings, stains, varnishes and related products. They operate through his vast network of over 4,000 stores around the world. SHW's market capitalization is currently $76.2 billion.

SHW stock has fallen It's up 2.7% year-to-date and is currently down nearly 13% from its 52-week high. Over the long term, the stock's performance has been more favorable compared to the broader market, up about 30% over the last year.

Notably, the stock has a dividend yield of 0.95%, based on its current quarterly dividend of $0.72 per share. Moreover, the company has been increasing dividends for the past 45 years, and with a payout ratio of just 24.16%, there is plenty of room for further growth.

Q1 earnings miss estimates

In its most recent quarter, Sherwin-Williams reported a decline in revenue even though profits increased year-over-year. Amid the housing market downturn, the paint giant's net sales fell 1.4% from a year ago to $5.37 billion, while EPS rose 6.4% to $2.17.result missed the consensus estimate EPS was $2.22 on sales of $130 million, a rare bottom-line failure for SHW.

Looking ahead, SHW projected earnings of $10.85 to $11.35 per share on low-to-mid single-digit sales growth, which also failed to impress Wall Street.

That said, Sherwin-Williams ended the March quarter with a cash and equivalent balance of $179.9 million, up from $151.4 million in the year-ago period.

Additionally, net new store numbers increased in all three major segments. Net new stores in the Paint Stores Group, Consumer Brands Group and Performance Coatings Group increased to 4,701 stores, 320 stores and 323 stores, respectively, compared to 4,628 stores, 307 stores and 315 stores in the prior year.

Moreover, over the past 10 years, the company's revenue and EPS grew at a CAGR of 8.27% and 14.43%, respectively.

competitive advantage

As the world's leading paint and coatings company, Sherwin-Williams enjoys significant competitive advantages due to its diverse customer base and strong brand equity. The company serves a wide range of professional, industrial, commercial and consumer customers. Additionally, major brands such as Sherwin-Williams, Valspar, Dutch Boy, Minwax, and Thompson's WaterSeal have gained significant brand recognition over the years and solidified their positions in the market.

Additionally, Sherwin-Williams' market leadership is reinforced by its managed distribution model. This model allows companies to tightly control their supply chain, pricing, and customer relationships. With an extensive network of more than 4,800 company-operated stores, SHW has direct control over these critical aspects, ensuring consistent product quality and timely customer service.

For example, our Paints Stores Group division boasts more than 3,600 sales representatives and 2,450 delivery drivers who are dedicated to quickly responding to customer needs. This robust infrastructure plays a critical role in Sherwin-Williams' ability to consistently gain market share and maintain industry leadership.

SHW stock looks cheap.

Analysts expect Sherwin-Williams' earnings to grow an average of 10.4% this year and 11.9% next year.

Overall, analysts consider the stock a “Moderate Buy.” Of the 23 analysts covering Dividend Aristocrats, 13 have rated it a “strong buy,” 2 have rated it a “moderate buy,” 7 have rated it a “hold,” and 1 has rated it a “moderate sell.” I am.

The average price target for the stock is $347.80, indicating a potential upside of 14.6% from Wednesday's closing price.

Following the earnings report, analysts at financial services company KeyBanc rated SHW stock as “Overweight''s price target is $400. This is based on his projection of 30x estimated 2025 earnings. The stock currently trades at about 23.5 times estimated 2025 earnings.

On the date of publication, Patikrit Bose I had no position (directly or indirectly) in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. Please see the Barchart Disclosure Policy for more information. here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Summarize this content to 100 words
As I expected, Central bank keeps interest rates unchanged The fight against stubborn inflation continues this month. Expectations for interest rate cuts are waning, geopolitical uncertainty installation in the background, dividend stocks It can provide investors with some sense of stability.dividend aristocrat is a title given to dividend stocks with a strong track record of increasing dividends to shareholders for at least 25 consecutive years. These companies also meet the requirements for membership in the benchmark S&P 500 index. ($SPX)another sign of their relative stability and financial strength.

Here are dividend aristocrats that have just bounced back from 52-week highs and upgraded on the strength of attractive valuations. Should I buy this Dividend Aristocrat at the push? Let's take a closer look here.About Sherwin-WilliamsFounded in 1866 by Henry Sherwin and John Williams, the company is based in Sherwin-Williams, Cleveland. (SHW) A leader in the paint industry. The company is a leading global manufacturer, marketer and retailer of paints, coatings, stains, varnishes and related products. They operate through his vast network of over 4,000 stores around the world. SHW's market capitalization is currently $76.2 billion.SHW stock has fallen It's up 2.7% year-to-date and is currently down nearly 13% from its 52-week high. Over the long term, the stock's performance has been more favorable compared to the broader market, up about 30% over the last year.www.barchart.com
Notably, the stock has a dividend yield of 0.95%, based on its current quarterly dividend of $0.72 per share. Moreover, the company has been increasing dividends for the past 45 years, and with a payout ratio of just 24.16%, there is plenty of room for further growth.Q1 earnings miss estimatesIn its most recent quarter, Sherwin-Williams reported a decline in revenue even though profits increased year-over-year. Amid the housing market downturn, the paint giant's net sales fell 1.4% from a year ago to $5.37 billion, while EPS rose 6.4% to $2.17.result missed the consensus estimate EPS was $2.22 on sales of $130 million, a rare bottom-line failure for SHW.

Looking ahead, SHW projected earnings of $10.85 to $11.35 per share on low-to-mid single-digit sales growth, which also failed to impress Wall Street.That said, Sherwin-Williams ended the March quarter with a cash and equivalent balance of $179.9 million, up from $151.4 million in the year-ago period.Additionally, net new store numbers increased in all three major segments. Net new stores in the Paint Stores Group, Consumer Brands Group and Performance Coatings Group increased to 4,701 stores, 320 stores and 323 stores, respectively, compared to 4,628 stores, 307 stores and 315 stores in the prior year.Moreover, over the past 10 years, the company's revenue and EPS grew at a CAGR of 8.27% and 14.43%, respectively.competitive advantageAs the world's leading paint and coatings company, Sherwin-Williams enjoys significant competitive advantages due to its diverse customer base and strong brand equity. The company serves a wide range of professional, industrial, commercial and consumer customers. Additionally, major brands such as Sherwin-Williams, Valspar, Dutch Boy, Minwax, and Thompson's WaterSeal have gained significant brand recognition over the years and solidified their positions in the market.

Additionally, Sherwin-Williams' market leadership is reinforced by its managed distribution model. This model allows companies to tightly control their supply chain, pricing, and customer relationships. With an extensive network of more than 4,800 company-operated stores, SHW has direct control over these critical aspects, ensuring consistent product quality and timely customer service.For example, our Paints Stores Group division boasts more than 3,600 sales representatives and 2,450 delivery drivers who are dedicated to quickly responding to customer needs. This robust infrastructure plays a critical role in Sherwin-Williams' ability to consistently gain market share and maintain industry leadership.SHW stock looks cheap.Analysts expect Sherwin-Williams' earnings to grow an average of 10.4% this year and 11.9% next year.www.barchart.com
Overall, analysts consider the stock a “Moderate Buy.” Of the 23 analysts covering Dividend Aristocrats, 13 have rated it a “strong buy,” 2 have rated it a “moderate buy,” 7 have rated it a “hold,” and 1 has rated it a “moderate sell.” I am.www.barchart.com
The average price target for the stock is $347.80, indicating a potential upside of 14.6% from Wednesday's closing price.

Following the earnings report, analysts at financial services company KeyBanc rated SHW stock as “Overweight''s price target is $400. This is based on his projection of 30x estimated 2025 earnings. The stock currently trades at about 23.5 times estimated 2025 earnings.On the date of publication, Patikrit Bose I had no position (directly or indirectly) in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. Please see the Barchart Disclosure Policy for more information. here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

https://www.nasdaq.com/articles/down-12-from-highs-should-you-buy-the-dip-in-this-dividend-aristocrat Down 12% from its high, should you buy this Dividend Aristocrat on the spur of the moment?