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Valued at a market cap of $7.3 billion, Mohawk Industries, Inc. (MHK) is a flooring manufacturer that creates products to enhance residential and commercial spaces around the world. The Calhoun, Georgia-based company operates through three segments: Global Ceramic; Flooring North America; and Flooring Rest of the World.
Companies valued at less than $10 billion are generally classified as “mid-cap stocks," and Mohawk Industries fits this criterion perfectly. The company offers its products to home centers, company-owned service centers and stores, floor-covering retailers, ceramic tile specialists, e-commerce retailers, residential builders, independent distributors, commercial contractors, and commercial end users.
The flooring maker dropped 28.7% from its 52-week high of $164.29. Mohawk Industries stock has gained nearly 1.1% in the past three months, surpassing the S&P 500 Index’s ($SPX) 3.4% decrease.
MHK has declined 26.6% over the past six months, while SPX fell marginally. Similarly, shares of Mohawk Industries have fallen 6.4% over the last 52 weeks, failing to keep pace with the SPX’s 8.9% surge in the same timeframe.
The stock has been trading below its 200-day moving average since December.
In spite of Mohawk Industries exceeding Q4 2024 expectations on Feb. 6, its stock fell 1.3% the next day. The company outperformed Wall Street projections in Q4, posting an adjusted EPS of $1.96 against the expected $1.88. Revenue reached $2.6 billion, also exceeding the consensus. Its Global Ceramic Segment, net sales increased 1.5% year-over-year, along with the North American flooring segment, which grew by 2.8% year-over-year. In addition, MHK expects first-quarter adjusted EPS to be between $1.34 and $1.44.
Moreover, when compared, MasterBrand, Inc. (MBC) performed weaker than MHK over the past 52 weeks, decreasing by nearly 25.4%. However, shares of MBC collapsed 25.4% over the past six months, almost aligning with MHK.
Despite MHK’s underperformance compared to the SPX over the past year, analysts are moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 15 analysts covering it, and it is currently trading below the mean price target of $142.27.
