/Mohawk%20Industries%2C%20Inc_%20logo%20on%20phone%20by-%20viewimage%20via%20Shutterstock.jpg)
Mohawk Industries, Inc. (MHK), headquartered in Calhoun, Georgia, is a global manufacturer of flooring products. With a market cap of $10.14 billion, Mohawk offers a wide range of innovative and durable flooring solutions, including carpet, hardwood, laminate, tile, and luxury vinyl.
Companies valued at $10 billion or more are classified as "large-cap" stocks and Mohawk Industries fits this classification. Despite being a mid-cap company, Mohawk demonstrates its industry leadership and strong market presence in the global flooring sector, offering innovative and high-quality products that cater to both residential and commercial markets.
MHK shares are trading 3.2% below their 52-week high of $164.05, which they hit on Jul. 31. The stock has gained 47% over the past three months, outperforming the Consumer Discretionary Select Sector SPDR Fund (XLY), which has gained 8.9% over the same time frame.
In the longer term, MHK is up 53.4% on a YTD basis, and the shares have gained 89.2% over the past 52 weeks. In comparison, XLY has gained 12.3% in 2024 and rallied 26.8% over the past year.
To confirm its bullish trend, MHK has been trading above its 50-day moving average since early July and its 200-day moving average since mid-November 2023.
Shares of MHK gained 19.5% following its Q2 earnings release on Jul. 25. Its adjusted earnings of $3 surpassed Wall Street estimates of $2.76. This was fueled by the company’s effective implementation of its productivity initiatives and restructuring actions combined with lower energy and material costs. However, the company’s revenue of $2.8 billion slightly missed consensus estimates of $2.84 billion.
Highlighting the contrast in performance, MHK’s competitor, Leggett & Platt, Incorporated (LEG), has significantly underperformed the stock. LEG has declined 46.1% on a YTD basis.
Given the stock's recent strong price performance, analysts are moderately optimistic about MHK's prospects. The stock has a consensus rating of "Moderate Buy" from 13 analysts in coverage. The mean price target is $163.15, suggesting a premium of 2.7% to its current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
