Masco's (MAS) Behr Introduces Nature-Based Color Palette
A subsidiary of Masco Corporation MAS, Behr Paint Company, recently unveiled a nature-based paint color palette — the BEHR BioNature Collection. The collection is inspired by biophilic design concepts that bridge outdoor and indoor elements and deliver a sense of harmony and well-being to any built environment.
Behr Paint, a popular brand of MAS’ Decorative Architectural Products segment, is the number one brand in the do-it-yourself (DIY) market for architectural coatings.
Shares of Masco have gained 21.2% versus the Zacks Building Products – Miscellaneous industry’s 23.6% growth in the year-to-date period. Earnings estimates for 2023 moved north in the past 60 days, to $3.35 per share from $3.28.
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Masco has been benefiting from its market-leading brands, acquisition synergies and cost-saving moves. A solid long-term growth prospect amid slow housing demand, intense inflation and supply chain woes is also commendable.
In first-quarter 2023, the top and bottom lines surpassed the Zacks Consensus Estimate, backed by strong pricing actions and operational improvements.
Although persistent industry woes are prominent headwinds for Masco, it expects solid growth in the long run. The company expects to generate 3-5% average annual sales growth organically. Acquisitions are likely to contribute 1-3% yearly to sales. It anticipates approximately 10% average annual EPS growth, backed by a strong operating margin expansion through cost productivity and volume leverage.
This apart, it plans to return shareholders 1-2% above EPS growth via dividends and 2-4% through repurchases. The Zacks Consensus Estimate for long-term EPS growth is currently pegged at 4.6%.
Zacks Rank & Key Picks
Currently, MAS has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Construction sector are Willdan Group, Inc. WLDN, Sterling Infrastructure, Inc. STRL and Howmet Aerospace, Inc. HWM.
Willdan Group is a nationwide provider of professional, technical and consulting services to utilities, government agencies and private industry. WLDN’s expected earnings growth rate for 2023 is 39.8%.
Willdan Group presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Sterling, currently carrying a Zacks Rank #2 (Buy), provides transportation, e-infrastructure and building solutions.
STRL’s expected earnings growth rate for 2023 is 11.4%.
Howmet, presently holding a Zacks Rank #2, is a global manufacturer of engineered products serving the aerospace, defense and commercial transportation industries. The company is expected to benefit from higher aircraft production rates and ease of supply chains in the transportation market. Importantly, share gains in the titanium aerospace market are expected to act as a major growth tailwind.
HWM’s earnings for 2023 are expected to grow by 20.7%.
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