Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a post-market leader 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 $88.5 million.
- MAS is up 4.8% today from today's close.
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More details on MAS:
Masco Corporation manufactures, distributes, and installs home improvement and building products in North America and internationally. The stock currently has a dividend yield of 1.8%. MAS has a PE ratio of 25.1. Currently there are 9 analysts that rate Masco a buy, no analysts rate it a sell, and 7 rate it a hold.
The average volume for Masco has been 5.3 million shares per day over the past 30 days. Masco has a market cap of $7.3 billion and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 2.36 and a short float of 3% with 2.52 days to cover. Shares are down 8.2% year-to-date as of the close of trading on Friday.
rates Masco as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, impressive record of earnings per share growth, compelling growth in net income and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the ratings report include:
- MAS's revenue growth has slightly outpaced the industry average of 4.2%. Since the same quarter one year prior, revenues slightly increased by 4.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- MASCO CORP has improved earnings per share by 23.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, MASCO CORP turned its bottom line around by earning $0.83 versus -$0.16 in the prior year. This year, the market expects an improvement in earnings ($1.00 versus $0.83).
- 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 39.6% when compared to the same quarter one year prior, rising from $53.00 million to $74.00 million.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Building Products industry and the overall market, MASCO CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
- In its most recent trading session, MAS has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- You can view the full Masco Ratings Report.