This has had huge growth in both earnings and share price over the last number of years, because it has been tied into both the US consumer and the US housing market. It is a brand most used by contractors. However, it is at a very high premium in terms of valuation at roughly 26X earnings. They are expecting earnings growth of 10%. This is not one he would be buying.

The biggest paint and wallcovering company in the US. The stock has moved significantly, much more so than earnings. This is one where you want to wait for the price to come down or for earnings to go up.

He really likes the US economy. 80% of this company’s revenues come from the US domestic economy. The housing industry is improving and consumer confidence just hit new highs.  Recently acquired Valspar, the #4 paint company, so they’ll have an opportunity to cut costs and fold that company in. Dividend yield of 1.09%.

The sector continues to strength through to early January.  It has started an upward trend, outperforming the market and short term momentum indicators are positive.  Stick with it for now.

This is one of the strongest sectors in the market. It is a slow and steady housing recovery and a lot of pent-up demand for home improvements. This is a great way to do this. Growth rate going forward should probably be 20% in revenues this upcoming year. Not terribly expensive.