The Consumer Discretionary group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Mohawk Industries (MHK) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Consumer Discretionary sector should help us answer this question. Mohawk Industries is a member of the Consumer Discretionary sector. This group includes 277 individual stocks and currently holds a Zacks Sector Ra ...

Momentum investing is essentially an exception to the idea of "buying low and selling high." Investors following this style of investing are usually not interested in betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time. Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth potent ...

Core Insights - Mohawk Industries, Inc. is a leading manufacturer in the flooring industry, known for its diverse product offerings including brands like American Olean, Daltile, and Karastan [1] Company Overview - The company has a rich history, having acquired Marazzi Group in 2013 and Dal-Tile in 2002, which significantly expanded its market presence [1] - Key executives include Mauro Vandini and Jeff Lorberbaum, who play crucial roles in the company's strategic direction [1] Brand Portfolio - Mohawk Industries operates a wide range of brands, including Eliane, Feltex, Godfrey Hirst, Grupo Daltile, Moduleo, Pergo, Quick-Step, Unilin, and Vitromex, showcasing its extensive reach in the flooring market [1]

Mohawk Industries, Inc. (MHK) has jumped 28.1% in the past three months, outperforming the Zacks Textile - Home Furnishing industry, the Zacks Consumer Discretionary sector, and the S&P 500 Index's rise of 26.3%, 2.1% and 6.6%, respectively. Image Source: Zacks Investment Research Improving new residential construction trends and commercial business channels has been supporting MHK's prospects. With potential rate cuts in the second half of 2024 or 2025, the company expects its demand to increase. Mohawk's ...

The Good Brigade Summary Following my coverage of Mohawk Industries (NYSE:MHK) in May'24, which I recommended a buy rating as the path to growth recovery was clearer and that the market was reacting positively to the stock, this post is to provide an update on my thoughts on the business and stock. Before we get to it, just to give an update on performance, MHK traded up to $164 (~38% upside from the date of my last post) and is now trading at my previous target price of ~$143. I remain buy-rated for MHK, w ...

Momentum investors typically don't time the market or "buy low and sell high." In other words, they avoid betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time. Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead of their future growth potential. In such a situation, inves ...

, July 27, 2024 (GLOBE NEWSWIRE) -- Mohawk Industries, Inc.MHK 2024 1.57 "EPS" 2.46 1.92 3.00 2024 28 5.1% 4.5% 2023 30 1.01 1.58 1.76 2.76 2024 6 29 2.62 4.10 3.1 4.85 2024 55 4.8% 5.0% 2023 7 1 58 1.81 2.84 2.88 4.51 Jeff Lorberbaum " 1.42 2.39 9000 75.5 1.2% "" 1 2000 2500 4000 1.3 2025 2026 3.4% 2.9% 7.4% 8.5% 5 10 U.S. ceramic tile trade association 400% 800% 8.3% 7.0% 9.0% 12.6% 6 6 LVT 4.3% 8.2% 8.6% LVT 2.80 2.90 " MOHAWK INDUSTRIES Mohawk Industries Mohawk American OleanDaltileElianeElizabethFeltex ...

Flooring manufacturer Mohawk Industries reported second-quarter revenue and earnings in line with analysts' expectations. Meanwhile, Bank of America analysts upgraded the stock to "buy" from "underperform," lifting their share-price target. The stock jumped Friday, pulling its year-to-date gain above 50%. Mohawk's stock, which rose nearly 20% on Friday, jumped after the flooring manufacturer reported secondquarter EPS of $2.46 and net sales of $2.8 billion, in line with analysts' expectations, per Visible A ...

Financial Data and Key Metrics Changes - The company's net sales for the quarter were $2.8 billion, down 5.1% compared to last year, with adjusted earnings per share at $3, up 9% year over year due to productivity initiatives and lower costs [56][92] - Operating income on an adjusted basis was $91 million, representing a 12.6% operating margin, a 40 basis points increase versus the prior year [38] - Free cash flow during the period was $142 million, bringing the year-to-date total to almost $240 million [72] Business Line Data and Key Metrics Changes - In the Flooring North America segment, sales were $959 million, a 4.3% decrease, although laminate products continued to gain market share [66] - Global ceramic sales were just over $1.1 billion, a 3.4% decrease, with operating income on an adjusted basis at $82 million, an increase of 260 basis points versus the prior year [94] - Flooring Rest of World segment reported net sales of $727 million, an 8.3% decrease, as market conditions remained slow [82] Market Data and Key Metrics Changes - The commercial sector continues to outperform residential, with hospitality, government, and education channels leading the performance [10][29] - Residential remodeling is under significant pressure due to consumers deferring large discretionary purchases [58] - In Europe, unit sales exceeded last year as the company leveraged manufacturing advantages to create higher value products [22] Company Strategy and Development Direction - The company is focusing on cost containment and restructuring actions to generate annualized savings of approximately $100 million [74] - Investments are being made in product differentiation and new technologies to enhance product offerings and improve market competitiveness [20][47] - The company anticipates that residential remodeling will lead the recovery as interest rates decline and consumer confidence improves [34] Management's Comments on Operating Environment and Future Outlook - Management expects continued challenges in the third quarter due to elevated interest rates, inflation, and weak housing sales impacting markets [31] - There is optimism about future recovery, with pent-up demand expected to increase flooring purchases once consumer confidence improves [45][46] - The company is managing controllable aspects of the business, including innovative product introductions and reducing overhead [32] Other Important Information - The company has initiated anti-dumping investigations for ceramic tile imports from India, which could lead to significant tariffs [21] - Cash and cash equivalents were just shy of $500 million, with net debt at $1.9 billion and leverage at 1.3 times [39][41] - The company is exploring the use of AI to enhance operational efficiency and reduce administrative costs [165] Q&A Session Summary Question: Why were the identified restructuring projects not included in the last program? - Management indicated that the current restructuring actions are necessary to optimize costs and capacity in response to market conditions [8] Question: What growth is expected for the second half of the year? - Management projected a decline in growth, with variations across different markets and channels [13] Question: Can you elaborate on product differentiation and its impact on business? - Management discussed ongoing investments in product differentiation to enhance value and improve sales mix, which should positively impact top-line and profitability [15][20] Question: How are the restructuring savings distributed across segments? - The anticipated savings from restructuring actions are expected to be fairly evenly spread across all three segments, with Flooring North America benefiting slightly more [49] Question: What is the outlook for the commercial business? - While the commercial sector is currently outperforming residential, there are signs of softness with fewer projects being initiated [51]

Core Insights - Mohawk Industries reported revenue of $2.8 billion for the quarter ended June 2024, reflecting a 5.1% decrease compared to the same period last year, while EPS increased to $3.00 from $2.76 year-over-year [1] Revenue Performance - Global Ceramic net sales were $1.12 billion, slightly above the estimated $1.11 billion, but down 3.4% from the previous year [4] - Flooring ROW net sales were $727.20 million, below the estimated $748.65 million, representing an 8.3% decline year-over-year [4] - Flooring NA net sales reached $958.50 million, also below the estimated $987.35 million, marking a 4.3% decrease compared to the prior year [4] Operating Income - Adjusted Operating Income for Global Ceramic was $94.80 million, exceeding the average estimate of $93.85 million [4] - Adjusted Operating Income for Flooring NA was $82 million, surpassing the average estimate of $74.16 million [4] - Adjusted Operating Income for Flooring ROW was $91.40 million, above the average estimate of $82.74 million [4] - Corporate and intersegment eliminations reported an adjusted operating income of -$11.50 million, slightly better than the estimated -$11.74 million [4] Earnings Surprise - The reported revenue of $2.8 billion was below the Zacks Consensus Estimate of $2.84 billion, resulting in a revenue surprise of -1.47% [5] - The company achieved an EPS surprise of +8.70%, with the consensus EPS estimate being $2.76 [5] Stock Performance - Over the past month, shares of Mohawk Industries have returned +19.1%, contrasting with the Zacks S&P 500 composite's -0.3% change [6] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [6]