Banksy is in town and everyone's talking graffiti. Which got us wondering, what would a Banksy index look like?
If you haven't heard yet, Banksy is the international graffiti artist hailing from England. He's making headlines now for his spontaneous installations that have been popping up around New York City.
No one knows what he looks like but everyone is swooning over his art. His clever, often politically charged pieces are calling new attention to graffiti as an art medium. Whether people will be looking to copy his fame or battle against vandals, several stocks would surely be affected by a graffiti renaissance.
Among graffiti artists, there are few spray paint brands that have remained a staple of the culture. The Sherwin-Williams Company (SHW) makes the long-time favorite brand Krylon, which has always been a favorite of taggers.
While Sherwin Williams dislikes the association it has with graffiti, there is no doubt it has benefitted in some way from Krylon's use by surreptitious street artists. Sherwin also currently has a beta of about 0.68, making it a more stable investment than many of its major competitors.
Another favorite of taggers is Rust-Oleum, produced by RPM International Inc (RPM). During the heyday of graffiti, taggers were known to debate the relative merits Krylon or Rust-O.
Turns out that in the long-run, RPM may have won over Sherwin with Rust-Oleum remaining a staple in the community. And RPM stock has been on a tear over the past 52-week period, gaining over 45%.
Click on the chart below to see RPM International's stock performance over the last year.
Looking farther afield
Artists, and individuals fighting to keep their walls clean, are buying paint and they will most likely go to the well-known mega stores.
On stock in this space is Home Depot (HD), which has been trading sideways for about 6 months with some clear resistance and support levels. With earnings out on November 13 and a spike in home construction and housing prices, Home Depot could still benefit from more than just a resurgence of street murals.
Home Depot's largest competitor, Lowe's Companies Inc. (LOW) is also in position to benefit from both housing starts as well as the growing appreciation of graffiti art. Wall Street estimates for its last earnings reports were pretty high for the home improvement retailer but it easily beat them.
With home prices rising throughout the summer, investors might want to take a second look to see if the company will beat estimates for the next report.
Finally, graffiti is by no means an industry but it is a major part of hip hop culture, along with rap and break-dancing. An investing idea on the more cultural side of the art style could benefit investors. Ecko Unltd. is a urban clothing brand that has always been a staple of the graffiti culture. While Ecko Unltd. is not a traded company but its parent company, Iconix Brand Group Inc (ICON) is traded on the NASDAQ.
The company looks a bit risky but has been on an absolute tear in the past 52-weeks plus and has strong expected earnings for the next 5 years. If Americans continue to flock to graffiti art every time Banksy makes a Tweet, brands associated with the art form could stand to benefit as well.
Click the chart below to view data over time.
Do you think that these companies could benefit from a new age of graffiti enthusiasm and be part of a Banksy Index? Use the list below as a starting point for your own analysis.
1. The Sherwin-Williams Company (SHW, Earnings, Analysts, Financials): Engages in the development, manufacture, distribution, and sale of paints, coatings, and related products primarily in North and South America, the Caribbean region, Europe, and Asia. Market cap at $18.45B, most recent closing price at $180.08.
EPS Growth Next 5 Years estimated at 13%.
Performance over the past 52-weeks is 21.05%.
Beta is at .68.
2. RPM International Inc. (RPM, Earnings, Analysts, Financials): Manufactures, markets, and sells various specialty chemical products to industrial and consumer markets worldwide. Market cap at $4.94B, most recent closing price at $36.87.
EPS Growth Next 5 Years estimated at 8%.
Performance over the past 52-weeks is 43.69%.
Beta is at 1.39.
EPS Growth Next 5 Years estimated at 15.76%.
Performance over the past 52-weeks is 30%.
Beta is at .89.
4. Lowe's Companies Inc. (LOW, Earnings, Analysts, Financials): Operates as a home improvement retailer in the United States, Canada, and Mexico. Market cap at $46.41B, most recent closing price at $48.45.
EPS Growth Next 5 Years estimated at 17.27%.
Performance over the past 52-weeks is 60.22%.
Beta is at 1.21.
5. Iconix Brand Group, Inc. (ICON, Earnings, Analysts, Financials): Operates as a brand management company that engages in licensing, marketing, and providing trend direction for a portfolio of owned consumer brands. Market cap at $1.77B, most recent closing price at $31.92.
EPS Growth Next 5 Years estimated at 23%.
Performance over the past 52-weeks is 73.01%.
Beta is at 1.71.
(List compiled by Antonio Alfonso. Analyst ratings sourced from Zacks Investment Research, all other data sourced from Finviz.)
Analyze These Ideas: Getting Started
- Read descriptions for all companies mentioned
- Access a performance overview for all stocks in the list
- Compare analyst ratings for the companies mentioned
- Compare analyst ratings to annual returns for stocks mentioned
- Real-Time Opinion: Scan the latest tweets about these companies (feed will open in a new window)
Dig Deeper: Access Company Snapshots, Charts, Filings
- The Sherwin-Williams Company (SHW, Chart, Download SEC Filings)
- RPM International Inc. (RPM, Chart, Download SEC Filings)
- The Home Depot, Inc. (HD, Chart, Download SEC Filings)
- Lowe's Companies Inc. (LOW, Chart, Download SEC Filings)
- Iconix Brand Group, Inc. (ICON, Chart, Download SEC Filings)
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