Why Mohawk Industries (MHK) is a Top Value Stock for the Long-Term

Core Insights - The article emphasizes the importance of utilizing Zacks Premium to enhance investment confidence and market engagement for both new and seasoned investors [1][3]. Zacks Style Scores - Zacks Style Scores are designed to assist investors in selecting stocks with the highest potential to outperform the market within a 30-day timeframe, using an alphabetic rating system from A to F based on value, growth, and momentum [4]. - The Style Scores are categorized into four distinct types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [5][6][7][18]. Value Score - The Value Score identifies undervalued stocks using various financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow, appealing to value investors seeking attractive pricing [5]. Growth Score - The Growth Score focuses on a company's financial health and future growth potential, analyzing projected and historical earnings, sales, and cash flow to identify sustainable growth opportunities [6]. Momentum Score - The Momentum Score helps investors capitalize on price trends by evaluating short-term price changes and earnings estimate revisions, guiding decisions on high-momentum stocks [7]. VGM Score - The VGM Score combines all Style Scores, providing a comprehensive assessment of stocks based on value, growth, and momentum, serving as a crucial indicator alongside the Zacks Rank [18]. Zacks Rank - The Zacks Rank is a proprietary stock-rating model that leverages earnings estimate revisions to aid investors in building successful portfolios, with a strong emphasis on selecting stocks rated 1 or 2 along with favorable Style Scores [9][11]. Stock Example: Mohawk Industries (MHK) - Mohawk Industries is highlighted as a leading global manufacturer of flooring products, with a diverse product range and a significant international presence [15]. - MHK holds a 3 (Hold) rating on the Zacks Rank, with a VGM Score of A and a Value Style Score of A, supported by a forward P/E ratio of 11.71 and an upward revision in earnings estimates for fiscal 2024 [16][17].