Trade-Ideas LLC identified
) as a "storm the castle" (crossing above the 200-day simple moving average on higher than normal relative volume) 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 $101.9 million.
- MHK has traded 81,596 shares today.
- MHK is trading at 1.55 times the normal volume for the stock at this time of day.
- MHK crossed above its 200-day simple moving average.
'Storm the Castle' stocks are worth watching because trading stocks that begin to experience a breakout can lead to potentially massive profits. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock is then free to find new buyers and momentum traders who can ultimately push the stock significantly higher. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize on. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on MHK:
Mohawk Industries, Inc. designs, manufactures, sources, distributes, and markets flooring products for remodeling and new constructions of residential and commercial spaces worldwide. MHK has a PE ratio of 22. Currently there are 5 analysts that rate Mohawk Industries a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Mohawk Industries has been 724,900 shares per day over the past 30 days. Mohawk has a market cap of $13.8 billion and is part of the consumer goods sector and consumer durables industry. The stock has a beta of 1.23 and a short float of 2.1% with 2.71 days to cover. Shares are down 1.4% year-to-date as of the close of trading on Thursday.
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rates Mohawk Industries as a
. 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 notable return on equity. We feel its strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- MHK's revenue growth has slightly outpaced the industry average of 1.9%. Since the same quarter one year prior, revenues slightly increased by 2.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- MOHAWK INDUSTRIES INC has improved earnings per share by 28.5% 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, MOHAWK INDUSTRIES INC increased its bottom line by earning $8.29 versus $7.25 in the prior year. This year, the market expects an improvement in earnings ($11.98 versus $8.29).
- 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 30.4% when compared to the same quarter one year prior, rising from $146.87 million to $191.56 million.
- 36.65% 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 9.58% is above that of the industry average.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Household Durables industry and the overall market on the basis of return on equity, MOHAWK INDUSTRIES INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- You can view the full Mohawk Industries Ratings Report.