Sherwin-Williams stock drops in Citi’s crowding rankings due to higher short interest

Investing.com - Sherwin-Williams (NYSE:SHW) has fallen to 15th place on Citi’s list of crowded long positions, according to the bank’s latest Quant Crowding Analysis released Monday. InvestingPro data shows the company trading at a relatively high P/E ratio compared to its near-term earnings growth potential, with a significant debt burden affecting its position.

The paint manufacturer posted a significant 17% month-over-month decrease in its crowding score, primarily driven by higher short interest and lower growth metrics, despite less expensive valuation levels. According to InvestingPro, the company has demonstrated strong returns over the last three months, though analysts expect net income to decline this year.

Citi’s analysis highlighted that Sherwin-Williams now ranks below several commodities and intermediates companies including Eastman Chemical (NYSE:EMN), Westlake Chemical (NYSE:WLK), and Celanese (NYSE:CE).

The report also identified other chemical companies experiencing negative moves in their crowding scores, including Axalta Coating Systems (NYSE:AXTA) and Huntsman Corporation (NYSE:HUN), both of which saw approximately 24% month-over-month decreases.

International Flavors & Fragrances (NYSE:IFF) was another notable decliner in the analysis, with its crowding score dropping about 18% month-over-month due to lower sentiment despite reduced historical relative valuations.

In other recent news, Elkem (OL:ELK) ASA reported a challenging second quarter in 2025, with a decline in operating income by 6% year-over-year to 8 billion NOK and a negative earnings per share (EPS) of 0.49 NOK. The company’s EBITDA margin was 10%, falling short of its long-term target of 15-20%. Elkem’s management is focusing on cost management and operational efficiency amid these difficult market conditions. The silicones market is under pressure due to Chinese overcapacity, and a strategic review of this division is ongoing, with conclusions expected by the end of the year. Additionally, Elkem has secured a new electricity contract with NTE, which will support operations at the Salton plant. The company also received a grant from Innovation Norway to pilot green products using recycled materials. Analysts have not reported any upgrades or downgrades for Elkem recently. The company is exploring potential EU safeguard measures to manage import price pressures, which could influence future performance.

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