In the video below, Fool analysts Taylor Muckerman and Joel South discuss Sherwin-Williams and why the paint manufacturer is their No. 3 pick among materials stocks in 2012.

Sherwin-Williams has caught on with the housing recovery in the U.S. and is riding it to big gains. It also bought Comex, a Mexican-based paint supply company, the largest acquisition in its history. The move was big because it gave the company exposure to markets where it had been weak, such as the southwest U.S., Canada, and Mexico, without much overlap. The deal will be a large driver of growth for Sherwin-Williams; it will add 5,000 stores to the company's portfolio in 2013. With $1.4 billion in 2011 sales, that should represent a significant enhancement for the company. What investors should be keeping their eyes on, however, is whether or not the housing recovery will continue and carries Sherwin-Williams even higher.

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The article Sherwin-Williams Is No.3 on Our List originally appeared on Fool.com.

Joel South has no positions in the stocks mentioned above. Taylor Muckerman has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend Sherwin-Williams. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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