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Valued at a market cap of $9.91 billion, Mohawk Industries, Inc. (MHK) manufactures and distributes flooring products that enhance residential and commercial space. Based in Calhoun, Georgia, the company’s products include carpet, rugs, ceramic tile, laminate, wood, stone, and vinyl flooring.
Shares of this flooring company have significantly outperformed the broader market over the past 52 weeks. MHK has rallied 60.3% over this time frame, while the broader S&P 500 Index ($SPX) has gained 27.2%. In 2024, shares of MHK are up 48.8%, compared to SPX’s 17.5% gains on a YTD basis.
Zooming in further, MHK’s outperformance becomes evident when compared to the Invesco S&P 500 Equal Weight Consumer Discretionary ETF’s (RSPD) 12.5% gains over the past 52 weeks and 3.6% return on a YTD basis.
Shares of MHK gained 19.5% following its Q2 earnings release on Jul. 25 due to its adjusted earnings of $3 surpassing 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.
For the current fiscal year, ending in December, analysts expect MHK’s EPS to grow 8.8% year over year to $10.00. The company’s earnings surprise history is promising. It beat the consensus estimates in each of the last four quarters.
Among the 13 analysts covering the stock, the consensus rating is a “Moderate Buy,” slightly more bullish than a “Hold” three months ago. That’s based on five “Strong Buy” ratings, seven “Holds,” and one “Strong Sell.”
On Jul. 29, Loop Capital Markets analyst Laura Champine maintained a “Buy” rating on MHK with a price target of $185 – the street high, which indicates a 19.3% upside from the current levels. The mean price target of $163.15 represents a premium of 5.2% to MHK’s 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.
