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Livonia, Michigan-based Masco Corporation (MAS) operates in the home improvement and building products sector. With a market cap of $16.8 billion, the company specializes in plumbing products and decorative architectural products, offering a wide range of brands and solutions for residential and commercial needs.
Shares of this home improvement firm have outpaced the broader market over the past 52 weeks. MAS has climbed 34.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 28.1%. However, in 2024, MAS' shares gained 14.2%, lagging behind SPX's 17.3% YTD gains.
Zooming in further, MAS has underperformed the S&P Homebuilders SPDR's (XHB) 40.2% gains over the past 52 weeks and a 16.6% increase on a YTD basis.
Masco Corporation has outperformed over the past year relative to SPX due to improved profitability from higher gross margins and cost savings, coupled with increased selling prices and efficient management of transportation and supply chain costs. Moreover, despite missing revenue estimates, the stock surged 7.5% on Jul. 25 after reporting its better-than-expected Q2 earnings estimates. Additionally, the company's strong capital allocation strategy, which returned $206 million to shareholders through dividends and share repurchases, and the positive outlook for adjusted earnings per share for the full year contributed to the stock's rise.
For the current fiscal year, ending in December, analysts expect MAS' EPS to grow 6.5% year over year to $4.11. The company's earnings surprise history is promising. It beat the consensus estimates in all of the last four quarters.
Among the 17 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on eight "Strong Buy" ratings, one "Moderate Buy," seven "Holds,” and one "Moderate Sell."
On Aug. 2, Argus Research analyst Chris Graja maintained a “Buy” rating on MAS stock and adjusted the target price to $90 - the street-high price target. This implies a modest potential upside of 17.7% from the current price levels. The mean price target of $82 represents a premium of just 7.2% to MAS' current levels.
On the date of publication, Sohini Mondal 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.
