It's quite common to see the market reward companies for recoveries even before the evidence is all in hand. Although
RPM International (NYSE:
RPM) shares haven't been as strong as those of
Fuller HB (NYSE:
FUL),
Sherwin Williams (NYSE:
SHW), or
Valspar (NYSE:
VAL) over the past year, investors have nevertheless pushed up these shares over the past six months. Ongoing recoveries in the consumer and industrial markets could certainly drive the shares even further, but investors should realize that they're no longer looking at a markedly cheap stock.
Surprisingly Strong Third Quarter Results
RPM certainly helped its case with strong fiscal third quarter results.
Revenue rose more than 15% as reported and nearly 11% on an organic basis, and handily surpassed the sell-side estimates. Interestingly, revenue was strong across both businesses; industrial saw a 12% revenue improvement on 7% volume growth, while consumer revenue rose more than 18%.
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