- Oops!Something went wrong.Please try again later.
Mohawk Industries MHK shares ended the last trading session 7.5% higher at $221. 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 7.4% gain over the past four weeks.
The upswing came after Mohawk reported solid first quarter 2021 results last week and provided impressive guidance for the second quarter. The company’s earnings and revenues surpassed the Zacks Consensus Estimate by 24.6% and 2.6%, respectively. Markedly, the quarterly sales figure is the highest in the company’s history. CEO Jeff Lorberbaum highlighted that the red-hot housing and home improvement market has been aiding Mohawk. He's optimistic that business reopenings after the easing of the pandemic's effects will help fuel increased demand in the quarters to come.
Price and Consensus
This flooring maker is expected to post quarterly earnings of $3.13 per share in its upcoming report, which represents a year-over-year change of +746%. Revenues are expected to be $2.58 billion, up 26% 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 >>>>
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
Mohawk Industries, Inc. (MHK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research