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Livonia, Michigan-based Masco Corporation (MAS) designs, manufactures and distributes home improvement and building products. Valued at a market cap of $16.4 billion, the company offers decorative architectural products, including architectural coatings, cabinet, door and window hardware, and plumbing products, including showerheads, bathtubs, toilets, spas, exercise pools, and fitness systems.
Shares of this home improvement company have lagged behind the broader market over the past 52 weeks. MAS has gained 26.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 31.1%. Moreover, shares of MAS are up 13.7%, compared to SPX’s nearly 24.1% return on a YTD basis.
Narrowing the focus, MAS appears to be also lagging behind the Industrial Select Sector SPDR Fund’s (XLI) 31.4% gain over the past 52 weeks and 21.8% return on a YTD basis.
Shares of MAS fell for three consecutive trading sessions after its Q3 earnings release on Oct. 29. Its adjusted earnings of $1.08 per share and revenues of $1.98 billion came in line with the Wall Street estimates, but the company’s lowered full-year 2024 adjusted EPS guidance and flat year-over-year revenue growth might have dampened investor confidence.
For the current fiscal year, ending in December, analysts expect MAS’s EPS to grow almost 6% year over year to $4.09. The company’s earnings surprise history is promising. It met or surpassed the consensus estimates in each of the last four quarters.
Among the 18 analysts covering the stock, the consensus rating is a “Moderate Buy,” which is based on eight “Strong Buy,” nine “Hold,” and one "Moderate Sell” rating.
On Oct. 30, Truist maintained a “Buy” rating on MAS and raised the price target to $92, which indicates a 20.8% upside from the current levels.
The mean price target of $87.22 represents a 14.5% upside from MAS’s current price levels. The Street-high price target of $96 suggests an upside potential of 26%.
