Back to top
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
American Public Education, Inc. (APEI) - free report >>
We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
American Public Education, Inc. (APEI) - free report >>
Image: Bigstock
Can Mohawk Industries Gain from Housing Recovery in 2016?
On Jun 3, 2016, we issued an updated research report on Mohawk Industries, Inc. (MHK - Free Report) .
On May 5, this global manufacturer of flooring products reported solid first quarter 2016 results.
First quarter 2016 adjusted earnings of $2.38 per share beat the Zacks Consensus Estimate of $2.33 by 2.15% and increased 40% year over year. The better-than-expected earnings were driven by robust operating margin, higher revenues and improved currency translations. Revenues of $2.17 billion surpassed the Zacks Consensus Estimate by 3.52% and increased 15.5% year over year on the back of higher sales across all the segments, especially Flooring Rest of the World. Organic revenues increased 19%.
Mohawk Industries enjoys ample exposure to the U.S. residential and remodeling sector, which has been witnessing a slow yet steady recovery. Also, the company is trying to boost its long-term fundamentals through acquisitions, brand support via strong advertising, regular innovations, and strong cash generation.
Further, Mohawk Industries intends to invest in internal projects in 2016, which are expected to expand its ceramic capacity and upgrade its capability in the U.S, Mexico, Europe and Russia.
Though the U.S dollar has weakened lately, unfavorable currency translations still remain a major overhang and may hurt Mohawk’s profitability in the near term. Also, a slowdown in Russian and European economy could also impact the top line in the near term.
Mohawk Industries carries a Zacks Rank #2 (Buy).
Investors interested in the wider consumer discretionary may also consider stocks like Capella Education Co. , American Public Education (APEI - Free Report) and Leggett & Platt, Incorporated (LEG - Free Report) . While American Public Education and Capella Education sport a Zacks Rank #1 (Strong Buy), Leggett & Platt holds a Zacks Rank #2.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>