- SHW posts strong Q3 results; gross margins rising; price increases sticking 

- A “tortoise on wheels;” with consistent EPS, divvy growth expected in 2020

- Homebuilders and related stocks group entering the “Golden 6 Months’ period

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Homebuilders and the related complex of stocks—from construction and lumber to paint and furniture—is a sector we recently noted (Oct. 18) as one whose equities look to be set up for a potentially nice run in the next six months, and not just because of low mortgage rates.  (More on this below.)

But it’s a big group of stocks and where does one begin?  I like to choose from among the best in the sector, and that will lead you to Sherwin Williams (SHW), the global maker of paints, coatings and related products for retail, professional, commercial and industrial customers.  If you used Dutch Boy paints, you bought a SHW product.  Sporting a $52 billion market cap, it sells both through its own 4,900 stores as well as the big box home retailers.

As a company with numerous well-recognized global brands and a strong track record, the stock isn’t cheap, with a price/earnings ratio of 23 times next year’s consensus $24.30 EPS expectation, 1/3 or more higher than peers. With a new 52-w...

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