Sherwin-Williams (SHW) is a terrific company with all the growth and consistency characteristics that I prefer. Historically the company has grown at double-digit above-average rates. However, since coming out of the Great Recession the company’s earnings growth rate has accelerated significantly. Consequently, Sherwin-Williams has been trading at uncharacteristically higher valuations than normal since 2013. On Read more about The Sherwin-Williams Company (NYSE:SHW) FAST Graphs YouTube Subscriber Request Series:[…]
Interest rates have been in a freefall for the better part of the past two decades. Moreover, the yield on the 10-year US Treasury, which is the flagship interest rate benchmark, has mostly been below 2% since the beginning of 2012. The 10-year Treasury note did reach 3% by the end of 2013 but has promptly fallen ever since to its current level of 1.59 percent.
After such an extended bull run it’s only logical to assume that many stocks are trading at frothy valuations. On the other hand, it’s also important to keep in mind that it is a market of stocks and not a stock market. Nevertheless, the truth is that many stocks are now significantly overvalued based on both historic norms and fundamental values. This is not true of all stocks, because it is also true that there are high quality stocks available today that are fairly valued. However, they are admittedly getting more difficult to find.
Dividends Don’t Drive Total Return They Contribute To It: Part 1 Introduction I believe there is a critical piece of investment wisdom that all investors in common stocks should possess. Every common stock investor should have a clear understanding of where and how long-term common stock returns are generated or come from. When an investor Read more about Dividends Don’t Drive Total Return They Contribute To It: Part 1[…]
When the stock market turns bad, like it has been recently, investors find it extremely difficult to remain positive. As a result, people tend to be more cynical during bad times than they would normally be during better times. When this happens, it becomes all too easy to paint every stock in the stock market with the same negative brush. Since most stocks will, temporarily at least, experience falling prices during a bad market, the distinction between good stocks and bad stocks can become blurred. […]
Sherwin-Williams Co (SHW) reports earnings tomorrow July 19, 2012. The Board of Directors have already declared a regular $.39 per share dividend. Analysts are expecting Sherwin-Williams Co to have a strong year. However, a quick glance at the earnings and price correlated F.A.S.T. Graphs™ on Sherwin-Williams Co (see below) paints a striking picture of overvaluation Read more about Sherwin-Williams Co Paints A Picture Of Overvaluation[…]
The investment industry is replete with pundits and self-proclaimed experts espousing various principles and rules that allegedly are the best way to value a stock correctly. Unfortunately, and in most cases, these rules are stated as fact, but unfortunately very few facts are ever presented to back them up. In other words, much of it Read more about Investors In Common Stocks Must Get Valuation Right; Here’s How[…]
Valuation Based on Fundamentals In order to prudently answer the question of when to buy a stock, an investor first needs to know the value of the company behind the stock. At the most basic level, a company derives its value based on the fundamentals behind the business it operates. Focusing on, and calculating the Read more about A Primer on Valuation: 8 Examples of How Earnings Growth Drives Dividends and Returns[…]