Trade-Ideas LLC identified

Masco

(

MAS

) as a momo momentum candidate. In addition to specific proprietary factors, Trade-Ideas identified Masco as such a stock due to the following factors:

  • MAS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $198.8 million.
  • MAS has a PE ratio of 29.
  • MAS is currently in the upper 30% of its 1-year range.
  • MAS is in the upper 25% of its 20-day range.
  • MAS is in the upper 35% of its 5-day range.
  • MAS is currently trading above yesterday's high.
  • MAS has experienced a gap between today's open and yesterday's close of 0.6%.

'Momo Momentum' stocks are valuable stocks to watch for a variety of reasons including historical back testing and price action. Market technicians refer to such stocks as being in a mark-up phase before a possible distribution period and price decline. Technical analysts and traders frequently find that the factors referenced above tend to create a temporary burst of strong wind in a stock's sail. Nevertheless, all successful traders must excel at maximizing gains while keeping losses to an absolute minimum. For that reason, the holding period on momo momentum stocks must always be a primary consideration, and this part of the puzzle is ultimately at the discretion of each individual's risk tolerance and portfolio risk management skills.

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More details on MAS:

Masco Corporation designs, manufactures, markets, and distributes home improvement and building products in North America and internationally. The stock currently has a dividend yield of 1.1%. MAS has a PE ratio of 29. Currently there are 8 analysts that rate Masco a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Masco has been 3.7 million shares per day over the past 30 days. Masco has a market cap of $11.4 billion and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 1.42 and a short float of 3.8% with 2.29 days to cover. Shares are up 26.7% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Masco as a

buy

. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, solid stock price performance, expanding profit margins and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:

  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Building Products industry average. The net income increased by 70.3% when compared to the same quarter one year prior, rising from $64.00 million to $109.00 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 11.6%. Since the same quarter one year prior, revenues slightly increased by 3.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 88.23% and other important driving factors, this stock has surged by 47.37% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, MAS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • 35.00% is the gross profit margin for MASCO CORP which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 6.33% trails the industry average.
  • Net operating cash flow has increased to -$100.00 million or 34.21% when compared to the same quarter last year. Despite an increase in cash flow of 34.21%, MASCO CORP is still growing at a significantly lower rate than the industry average of 164.92%.

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