Masonite International Corporation (NYSE:DOOR) Stock is Soaring, Here is Why

Masonite International Corporation (NYSE:DOOR) Stock is Soaring, Here is Why

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The Masonite International Corporation (DOOR) shares are trading at higher $79.44 and the avg recommendation for the stock is Strong Buy. The current analyst price target stands at $73.56.

To add more color to this target, the company’s high over the last year is $89.21 and the low is $34.88. Over the last 52 weeks, DOOR is down -10.95% while the S&P 500 is up 1.47%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, DOOR reported a profit of $134.28 million. Masonite International Corporation also saw revenues increase to $551.23 million. In addition, DOOR has free cash flow of -$11.2 million as of 03-2020 The company’s EBITDA came in at $74.48 million which compares well with its peers.

DOOR booked profit margins of 3.20%, its Return on Equity (ROE) is 11.70%, and its Return on Assets is 3.70%. All told, it is clear that, DOOR needs to be on your watchlist.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. DOOR has a short ratio of 1.61 and outstanding shares of 24.86M.

Company Outlook

DOOR has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.26 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 2.80. Masonite International Corporation DOOR also noted assets of $1.88 billion at the end of the last quarter. Investors should also keep an eye on sector updates as DOOR has historically followed its peers on positive news.

All told, Masonite International Corporation DOOR has strung together solid data and demonstrated underlying fundamentals. At its current valuation, DOOR represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Masonite International Corporation DOOR is now commanding a market cap of 1.80B and a float of 24.10M. DOOR is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of DOOR stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in DOOR, either long or short, and we have not been compensated for this article.