Sherwin-Williams Shares Climb as It Prepares to Join Dow, Replacing Dow Inc.
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As Sherwin- Williams (NYSE:SHW) gets ready to join the Dow Jones Industrial Average (DJIA), its shares jumped as much as 7.1% Monday, making it one the top large-cap gainers of the day. In Monday trade, the stock finally registered 3.59%.
Announced by S&P Dow Jones Indices on Friday as part of a regular rebalance, Sherwin-Williams will replace chemical powerhouse Dow (DOW) in the 30-stock benchmark. Effective Nov. 8, the update shows an effort to represent blue-chip leaders from many sectors inside the DJIA.
Having a market capitalization of around $90 billion, Sherwin-Williams has seen a share price increase of 85% over the past five years. Following its 2019 split into three separate firms, Dow, which will leave the index, presently has a market value of roughly $34 billion. The DJIA admission is likely to increase investor interest in Sherwin-Williams, so supporting its reputation as a major participant in the paints and coatings sector among steady long-term growth.
This article first appeared on GuruFocus.