This page is temporarily not available. Please check later as it should be available shortly. If you have any questions, please email customer support at email@example.com or call 800-767-3771 ext. 9339.
Industries Inc (MHK - Snapshot Report)
are many industry insiders who believe housing is making a turnaround.
I have yet to agree that the action in housing we are seeing is
substantial in terms of price.
thing we do have is new and
existing home sales on the rise. This to
me is a positive for a company like Mohawk. Whether you think that the
average consumer is finally buying houses on confidence or that
simply scooping up great deals at rock bottom prices, both buyers will
have repairs to make.
most common and sometimes most
valuable is flooring and that is where Mohawk comes in.
Company Description &
Mohawk is a primary supplier of residential and commercial flooring.
offers a complete selection of carpet, ceramic tile, wood, stone,
vinyl, rugs and other home products.
may be familiar with their name
brands in the industry, which include Mohawk, Karastan, Ralph Lauren,
Bigelow, Quick Step, Dal-Tile and American Olean.
flooring is everywhere; from
small boutiques and factory direct shops to major retailers across the
and the world including Home Depot, Bloomingdales, Lowe’s, Macy’s,
also runs its own trucking
fleet and operates over 300 local distribution locations.
are some housing numbers to
Home sales rose 5.0% in
December to an annual rate of 4.61 million
to a year ago, sales are up
- Sales of single
family homes were up
4.6% to an annual rate of 4.11 million, and were 4.3% above a year ago
- Condo sales were up
November to an annual rate of 500,000
median price of an existing
single family home was down 2.5% from a year ago to 165,100
- The median price of a
owned condo fell 3.0% to $160,000.
tells me that more homes are
changing hands, but still at lower prices.
The bulk of home sales are distressed, existing homes (foreclosures)
that most likely require some “work” to become not just livable, but
to the new buyer.
activity is all investors,
chances are they are also going to be replacing flooring, but most
cheaper solutions like carpet.
way, I think the present environment
bodes very well for companies like MHK.
Mohawk’s financials and stock price are beginning to reflect this
after a couple rough earnings quarters.
of them as the second
derivative to a housing and consumer recovery.
Mohawk is a mid-cap company (4.38 billion) that is trading at about 22
trailing earnings (P/E). Looking forward, Zacks Consensus
calling for that number to drop to 17 with no change in price from
hit the Zacks Rank 1 Strong
Buy list January 26th, coming from a Zacks Rank 3 about a week ago.
reported a 2% quarterly sales
decrease at their last earnings report, but showed year over year sales
of 10% and a 12% rise in earnings per share in the same period with
of roughly 5.3 billion in FY2010. Mohawk is expected to earn
FY2011 according to the Zacks Consensus Estimate.
Even with several tough quarters, we saw at least one analyst revise
quarter and next year’s earnings estimates up within the past month. The others
have stood firm on their estimates to date. Mohawk will report
Q4 results on
are for Mohawk to generate
$0.72 in income this quarter. Of the 11 analysts who cover
consensus is for the company to grow earnings by 17.85% in FY2011 with
jump of 25.38% in FY2012.
terms of the magnitude of analyst
estimate trends, we are seeing all of the consensus estimates lower
were 90 days ago from current quarter, out to FY 2012.
Analysts may still make adjustments ahead of
the next report.
missed estimates last quarter
by 3.49%, which they warned of. But the
average earnings surprise is still a positive 4.82% over the past year.
Market Performance &
Mohawk stock has just recently begun picking up momentum.
October marked the start of a major rally for
MHK. The stock finds itself in a clean, strong
bullish channel and has been making a series of higher highs and lower
over the past 2 months.
52 week high of $68.86 was
made back in May of 2011. MHK has
remained above its 50 day moving average since early October and just
jumped above its 200 day moving average which currently stands at
with its struggles in 2011, Mohawk
still managed to outpace the S&P 500 by 6% over the past year
and almost 15%
over the last twelve weeks. The recent
retracement in MHK is healthy if it is going to continue its bullish
A Levy is the Momentum Stock
Strategist for Zacks.com. He is also the Editor in charge of the
Whisper Trader Service.
Week's Momentum Zacks Rank Buy Stocks:
(DVA) - Insurance
companies aren’t the only
ones who stand to benefit from healthcare for all. Providers
like DaVita will be able to help
more sick patients under the new plan and in turn generate more
are the premier kidney care provider
in America and serve the more than 400,000 people in need of their
services. They are looking to expand their services
over the coming years which should prove to be a profitable venture
to analysts. Studies
have shown that many on dialysis
are not getting enough treatment. This
is not only true here, but abroad as well. DaVita is working
to make treatment easier,
cheaper and more convenient. They are
growing fast and their stock price is doing the same.
READ FULL ARTICLE
(HUM) - The
United States is moving towards
healthcare for all. All Americans will
pay into a system organized and mandated by our government called The
Protection and Affordable Care Act (aka ObamaCare). Whether
you believe the plan is right or
wrong for America, companies like Humana will reap the rewards from
and lower care costs. Even
though insurance providers like
Humana have been trending higher, there may be more momentum left in
READ FULL ARTICLE
Plus (CPWM) - Cost
Plus is more than a place to go to find cheap
wine and beer, unique fun foods and cool quality furnishings; it’s a
momentum stock. The stock’s increased upward momentum can be attributed
elevated foot traffic in their stores and solid sales gains in a strained consumer retail space.
numbers, Cost Plus has enjoyed 7 consecutive quarters of
positive comps and 8 consecutive quarters of increases in customer
count in their stores. Cost
Plus is becoming more than a niche and
with 5 to 10 new stores planned for the upcoming year. They are
themselves as a real contender in the US retail market with a loyal following
customers, me included.
READ FULL ARTICLE
Industries (MIND) - Much
the world’s surface has been mapped. You
can even capture an image of someone’s house via satellite on the other
the world. What we don’t know much about
is what lies beneath the soil, socks and water.
Below the earth’s surface is a plethora of resources that have yet to
leases and sells all types of geophysical equipment that are used to
and other studies for all sorts of industries around the globe. Their
are an essential piece of the puzzles as we work to make the world a
more efficient place with sufficient energy to power our growing
READ FULL ARTICLE