Sherwin-Williams Co (SHW)
Sherwin Williams Company is a Cleveland, Ohio based company in the paint and coating manufacturing industry. The company primarily engages in the manufacture, distribution, and sale of paints, coatings, floorcoverings, and related products to professional, industrial, commercial, and retail customers primarily in North and South America and Europe.
Stock Price Trends
Stock price trends estimated using linear regression.
Key facts
- The primary trend is increasing.
- The growth rate of the primary trend is 31.33% per annum.
- SHW price at the close of March 31, 2025 was $349.19 and was lower than the bottom border of the primary price channel by $7.18 (2.01%). This indicates a possible reversal in the primary trend direction.
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 17.36% per annum.
- SHW price at the close of March 31, 2025 was inside the secondary price channel.
- The direction of the secondary trend is opposite to the direction of the primary trend. This indicates a possible reversal in the direction of the primary trend.
Linear Regression Model
Model equation:
Yi = α + β × Xi + εi
Top border of price channel:
Exp(Yi) = Exp(a + b × Xi + 2 × s)
Bottom border of price channel:
Exp(Yi) = Exp(a + b × Xi – 2 × s)
where:
i - observation number
Yi - natural logarithm of SHW price
Xi - time index, 1 day interval
σ - standard deviation of εi
a - estimator of α
b - estimator of β
s - estimator of σ
Exp() - calculates the exponent of e
Primary Trend
Start date: September 14, 2022
End date: December 18, 2024
a = 4.6443
b = 0.0007
s = 0.0656
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0007) – 1
= 31.33%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0656) – 1
= 30.00%
September 14, 2022 calculations
Top border of price channel:
Exp(Y618)
= Exp(a + b × X618 + 2 × s)
= Exp(a + b × 896 + 2 × s)
= Exp(4.6443 + 0.0007 × 896 + 2 × 0.0656)
= Exp(5.4446)
= $231.50
Bottom border of price channel:
Exp(Y618)
= Exp(a + b × X618 – 2 × s)
= Exp(a + b × 896 – 2 × s)
= Exp(4.6443 + 0.0007 × 896 – 2 × 0.0656)
= Exp(5.1822)
= $178.08
December 18, 2024 calculations
Top border of price channel:
Exp(Y1,187)
= Exp(a + b × X1,187 + 2 × s)
= Exp(a + b × 1,722 + 2 × s)
= Exp(4.6443 + 0.0007 × 1,722 + 2 × 0.0656)
= Exp(6.0614)
= $428.99
Bottom border of price channel:
Exp(Y1,187)
= Exp(a + b × X1,187 – 2 × s)
= Exp(a + b × 1,722 – 2 × s)
= Exp(4.6443 + 0.0007 × 1,722 – 2 × 0.0656)
= Exp(5.7990)
= $329.98
Description
- The primary trend is increasing.
- The growth rate of the primary trend is 31.33% per annum.
- SHW price at the close of March 31, 2025 was $349.19 and was lower than the bottom border of the primary price channel by $7.18 (2.01%). This indicates a possible reversal in the primary trend direction.
Secondary Trend
Start date: September 10, 2024
End date: March 31, 2025
a = 6.7939
b = -0.0005
s = 0.0352
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0005) – 1
= -17.36%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0352) – 1
= 15.12%
September 10, 2024 calculations
Top border of price channel:
Exp(Y1,117)
= Exp(a + b × X1,117 + 2 × s)
= Exp(a + b × 1,623 + 2 × s)
= Exp(6.7939 + -0.0005 × 1,623 + 2 × 0.0352)
= Exp(6.0164)
= $410.11
Bottom border of price channel:
Exp(Y1,117)
= Exp(a + b × X1,117 – 2 × s)
= Exp(a + b × 1,623 – 2 × s)
= Exp(6.7939 + -0.0005 × 1,623 – 2 × 0.0352)
= Exp(5.8756)
= $356.25
March 31, 2025 calculations
Top border of price channel:
Exp(Y1,255)
= Exp(a + b × X1,255 + 2 × s)
= Exp(a + b × 1,825 + 2 × s)
= Exp(6.7939 + -0.0005 × 1,825 + 2 × 0.0352)
= Exp(5.9109)
= $369.03
Bottom border of price channel:
Exp(Y1,255)
= Exp(a + b × X1,255 – 2 × s)
= Exp(a + b × 1,825 – 2 × s)
= Exp(6.7939 + -0.0005 × 1,825 – 2 × 0.0352)
= Exp(5.7701)
= $320.57
Description
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 17.36% per annum.
- SHW price at the close of March 31, 2025 was inside the secondary price channel.