Sherwin-Williams Co. (NYSE: SHW) shares rose in value Monday Nov 21 with slower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, stocks were set to open up this morning. The Dow Jones Industrial Average futures YMZ6, +0.20% was 10 points, or less than 0.1%, higher at 18,863, while S&P 500 index futures ESZ6, +0.44% rose 3.95 points, or 0.2%, at 2,184.75. Nasdaq-100 NQZ6, +0.74% added 12.25 points, or 0.2%, to 4,820.75.
Analysts at Vetr Inc. upgraded shares of Sherwin-Williams Co. (NYSE: SHW) from Buy to Strong-Buy today. With a rating of Strong-Buy on the shares, the company has a 52-week high of $312.48. The one-year price target of $304.14 is above the opening price of $260.24, causing a fair amount of other analysts to report on the company in recent days. Stock prices often trend to the upside on recommendations and new price targets of professional brokerage firms.
Sherwin-Williams Co. (NYSE: SHW) shares last traded at $260.72, a jump of $0.43 or 0.17% over the previous closing price. Opening at $260.24, they varied from $260.05 and $261.83 throughout the day.
Sherwin-Williams Co. (NYSE: SHW) now has a market cap of 23.98B.
Sherwin-Williams Co. (NYSE: SHW) Average Daily Trading Volume
57,444 shares crossed the trading desk yesterday, lower than the average, out of a total float 79,882,000. Trading volume is likely to increase in the next few days as swing traders often use increases in trading volume to identify substantial volume accumulation or dissemination by institutional investors.
As with all potential breakouts, investors look for volume to be at least 40%-50% above normal on the breakout to indicate that fund managers and other professional investors are jumping in.
Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these have substantial teams of analysts researching thousands of stocks, so it is good corroboration to see them taking a postion in a stock you’re researching.
Sherwin-Williams Co. (NYSE: SHW) Moving Averages
A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.
This is because the average acts like a floor (support), so the price bounces up off of it.
In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.
By spotting trends, moving averages allow investors to make those trends work in their favor and increase the number of successful trades.
With that in mind, Sherwin-Williams Co. (NYSE: SHW) now has a 50-day MA of $261.84 and 200-day MA of $283.63. It has traded in a 52-week range between $234.96 – 312.48 and today’s last price is 16.56%% lower than the 52 week high of $312.48.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors identify companies that have grown their earnings by at least 25% over 3 consecutive years.
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