Mohawk Industries (MHK) Soars 3.3%: Is Further Upside Left in the Stock?
Mohawk Industries (MHK) shares ended the last trading session 3.3% higher at $103.18. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 1.9% gain over the past four weeks.
MHK has been benefiting from strategic initiatives, global presence in the business and accretive acquisitions. It has implemented multiple price increases in most product categories to cover inflation, which is expected to improve margins in coming quarters.
This flooring maker is expected to post quarterly earnings of $2.64 per share in its upcoming report, which represents a year-over-year change of -40.1%. Revenues are expected to be $2.93 billion, down 7% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Mohawk Industries, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on MHK going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Mohawk Industries belongs to the Zacks Textile - Home Furnishing industry. Another stock from the same industry, Culp, Inc. (CULP), closed the last trading session 1.8% higher at $5.16. Over the past month, CULP has returned -1.4%.
Culp, Inc.'s consensus EPS estimate for the upcoming report has changed -75% over the past month to -$0.35. Compared to the company's year-ago EPS, this represents a change of +25.5%. Culp, Inc. currently boasts a Zacks Rank of #3 (Hold).
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