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Wednesday, September 23, 2020

Mohawk Industries Inc. (NYSE:MHK) is Gaining Momentum on Earnings Catalyst

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The Mohawk Industries Inc. (MHK) shares are trading at higher $85.01 and the avg recommendation for the stock is Hold. while the current analyst price target stands at $90.15.

To add more color to this target, the company’s high over the last year is $156.60 and the low is $56.62. Over the last 52 weeks, MHK is down -45.72% while the S&P 500 is down -0.64%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, MHK reported a profit of $616.44 million. Mohawk Industries Inc. also saw revenues increase to $2.29 billion. In addition, MHK has free cash flow of $79.34 million as of 03-2020. The company’s EBITDA came in at $297.0 million which compares well with its peers.

MHK booked profit margins of 7.50%, its Return on Equity (ROE) is 9.30%, and its Return on Assets is 5.40%. All told, it is clear that, MHK 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. MHK has a short ratio of 2.08 and outstanding shares of 71.55M.

Company Outlook

MHK has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 1.32 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 10.19. Mohawk Industries Inc. MHK also noted assets of $13.26 billion at the end of the last quarter. Investors should also keep an eye on sector updates as MHK has historically followed its peers on positive news.

All told, Mohawk Industries Inc. MHK has strung together solid data and demonstrated underlying fundamentals. At its current valuation, MHK 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.

Mohawk Industries Inc. MHK is now commanding a market cap of 6.00B and a float of 58.16M. MHK 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 MHK 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 MHK, either long or short, and we have not been compensated for this article.

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