Trade-Ideas LLC identified

Mohawk Industries

(

MHK

) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Mohawk Industries as such a stock due to the following factors:

  • MHK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $134.3 million.
  • MHK is up 3.4% today from today's close.

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More details on MHK:

Mohawk Industries, Inc. designs, manufactures, sources, distributes, and markets flooring products for residential and commercial applications for remodeling and new constructions worldwide. It operates in three segments: Carpet, Ceramic, and Laminate and Wood. MHK has a PE ratio of 22. Currently there are 6 analysts that rate Mohawk Industries a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Mohawk Industries has been 683,400 shares per day over the past 30 days. Mohawk has a market cap of $12.3 billion and is part of the consumer goods sector and consumer durables industry. The stock has a beta of 1.26 and a short float of 2.2% with 1.81 days to cover. Shares are down 9.9% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Mohawk Industries as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, compelling growth in net income, expanding profit margins and good cash flow from operations. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • MHK's revenue growth has slightly outpaced the industry average of 2.4%. Since the same quarter one year prior, revenues slightly increased by 8.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • MOHAWK INDUSTRIES INC has improved earnings per share by 40.3% 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, MOHAWK INDUSTRIES INC increased its bottom line by earning $7.25 versus $5.05 in the prior year. This year, the market expects an improvement in earnings ($10.11 versus $7.25).
  • 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 Household Durables industry average. The net income increased by 42.1% when compared to the same quarter one year prior, rising from $151.27 million to $214.91 million.
  • 35.84% is the gross profit margin for MOHAWK INDUSTRIES INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 9.99% is above that of the industry average.
  • Net operating cash flow has significantly increased by 72.66% to $389.43 million when compared to the same quarter last year. In addition, MOHAWK INDUSTRIES INC has also vastly surpassed the industry average cash flow growth rate of -33.71%.

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