- Sherwin-Williams will join the Dow Jones Industrial Average on November 8.
- Sherwin-Williams has a market cap of $90.15 billion.
Your neighborhood paint company just made it to the Dow Jones Industrial Average.
The Dow Jones Industrial Average is one of the oldest stock market indexes. It includes 30 of the most influential and capitalized companies in the US economy.
S&P Dow Jones Indices announced on Friday that it will add Sherwin-Williams to the index to "ensure a more representative exposure" to the materials industry.
The paint company will replace Dow Inc., a materials science company, before trading opens on November 8.
Here's everything you need to know about Sherwin-Williams.
All about The Sherwin-Williams Company
Founded in 1866 by Henry Sherwin and Edward Williams, the company is headquartered in Cleveland and employs over 64,000 people.
Sherwin-Williams boasts of several innovations in the painting industry, including the first resealable paint can and the first ready-mixed paint. It later introduced the paint can shaker, which could mix five gallons of paint so customers could purchase more.
It is now run by Heidi Petz, who was named CEO and president at the start of 2024 after serving as the company's chief operating officer and president. She replaced former CEO John Morikis, who has continued to serve as the executive chairman.
The company has over 5,000 company-operated store locations in the US, Canada, Latin America, and the Caribbean. It also sells additional paint brands through retailers and distributors in Europe, Australia, New Zealand, and China.
Despite being selected for the Dow Jones Industrial Average, the company's profits grew slower than expected in the most recent quarter. In its third-quarter earnings call in October, the company fell short of expectations, posting profits of $3.37 a share instead of a predicted $3.55 a share.
"In what remains a tough macroeconomic environment, our strategy continues to be providing our customers with differentiated solutions that make them more productive and profitable," Petz said at the time, highlighting "continued softness in the North American DIY market."
Petz said it invested "ahead of the curve" in the third quarter, making "near-term investments in stores, sales and technical reps, expanded services and digital capabilities" to generate growth.
"Our team is focused, determined, and experienced, and we will continue to aggressively pursue above-market growth while controlling what we can control," Petz said.
As of November, Sherwin-Williams has a market capitalization of $90.15 billion.