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Masco Corporation (MAS), headquartered in Livonia, Michigan, provides home improvement and building products. Valued at $14.9 billion by market cap, the company’s products include faucets, kitchen and bath cabinets, architectural coatings, and builders’ hardware products. Masco sells its products through mass merchandisers, home centers, hardware stores, and other wholesale and retail outlets to consumers and contractors.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and MAS perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the building products & equipment industry. MAS has a strong presence in the home improvement and building product markets, with leading brands like Delta and Behr. The company's focus on innovation and quality has earned it a loyal customer base and market leadership. By investing in research and development, Masco stays ahead of industry trends and consumer preferences, maintaining a competitive edge in its industry.
Despite its notable strength, MAS slipped 18.8% from its 52-week high of $86.70, achieved on Oct. 15, 2024. Over the past three months, MAS stock has declined 4.6%, outperforming the Nasdaq Composite’s ($NASX) 10.6% dip during the same time frame.
In the longer term, shares of MAS fell 3% on a YTD basis, outperforming NASX’s YTD losses of 7.3%. However, the stock dipped 8.1% over the past 52 weeks, underperforming NASX’s 9.7% returns over the last year.
To confirm the bearish trend, MAS has been trading below its 200-day moving average since mid-February, with slight fluctuations. The stock is trading below its 50-day moving average since late October, 2024, with some fluctuations.
MAS' underperformance can be attributed to lower sales volumes and prices for plumbing and architectural products. In addition, its projected sales decline and shrinking returns on capital indicate increasing competition and deteriorating demand.
On Feb. 11, MAS shares closed up more than 1% after reporting its Q4 results. Its adjusted EPS of $0.89 surpassed Wall Street expectations of $0.88. The company’s revenue was $1.83 billion, missing Wall Street forecasts of $1.84 billion. Masco expects full-year adjusted EPS in the range of $4.20 to $4.45.
MAS’ rival, Builders FirstSource, Inc. (BLDR) shares lagged behind the stock, with losses of 37.7% over the past 52 weeks and 9.8% on a YTD basis.
Wall Street analysts are moderately bullish on MAS’ prospects. The stock has a consensus “Moderate Buy” rating from the 19 analysts covering it, and the mean price target of $84.44 suggests a potential upside of 19.9% from current price levels.
