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Livonia, Michigan-based Masco Corporation (MAS) operates in the home improvement and building products sector. With a market cap of $18.2 billion, the company specializes in plumbing products and decorative architectural products, offering a wide range of brands and solutions for residential and commercial needs.
Companies valued at less than $10 billion or more are generally considered “mid-cap” stocks, and Masco fit right into that category. Masco benefits from a strong brand portfolio, with industry-leading names like Delta, Hansgrohe, Behr, and Kilz in plumbing and coatings, driving customer loyalty and premium pricing. Strategic acquisitions, such as Sauna360 Group Oy, further expand its offerings.
Shares of MAS hover around their 52-week high of $83.56, recorded on Sept. 19. Its shares have surged 22% over the past three months, outpacing the SPDR S&P Homebuilders ETF’s (XHB) 18.6% return over the same time frame.
In the longer term, MAS stock is up 24% on a YTD basis, lagging behind XHB’s 28.8% gains. Moreover, MAS has climbed 56.4% over the past 52 weeks, underperforming XHB’s 61.7% returns over the same time frame.
Despite the weak price momentum in the long term, MAS has been trading above its 50-day and 200-day moving average since mid-July, indicating an uptrend.
Despite missing revenue estimates, the stock jumped 7.5% on July 25 after announcing better-than-expected Q2 earnings. The surge was further supported by the company's robust capital allocation strategy, which returned $206 million to shareholders through dividends and share buybacks. Additionally, the optimistic outlook for the current year drove investor confidence, fueling the stock's rise.
Also, MAS has surpassed its rival Carrier Global Corporation’s (CARR) 52.1% rise over the past 52 weeks but lagged behind CARR’s 40% rise on a YTD basis.
Analysts maintain reasonable bullishness about its prospects. The stock has a consensus rating of “Moderate Buy” from the 18 analysts covering the stock, and it currently trades above its mean price target of $82.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
