Stock of the Day

July 19, 2021

Mohawk Industries (MHK)

$128.28
-$1.61 (-1.2%)
Market Cap: $8.80B

About Mohawk Industries

Mohawk Industries, Inc. designs, manufactures, sources, distributes, and markets flooring products for residential and commercial remodeling, and new construction channels in the United States, Europe, Latin America, and internationally. It operates through three segments: Global Ceramic, Flooring North America, and Flooring Rest of the World. The company provides ceramic, porcelain, and natural stone tiles products for floor and wall applications; natural stones, porcelain slabs, and quartz countertops, as well as installation materials; floor covering products comprising broadloom carpets, carpet tiles, rugs and mats, carpet pads, laminates, medium-density fiberboards, wood floorings, luxury vinyl tiles, and sheet vinyl; and roofing panels, insulation boards, mezzanine flooring products, medium-density fiberboard, and chipboards. It also licenses its intellectual property to flooring manufacturers. The company sells its products under the American Olean, Daltile, Decortiles, Eliane, EmilGroup, KAI, Kerama Marazzi, Marazzi, Ragno, Aladdin Commercial, Durkan, Foss, IVC, Karastan, Mohawk, Mohawk Group, Mohawk Home, Pergo, Portico, Quick-Step, Feltex, GH Commercial, Godfrey Hirst, Hycraft, IVC Commercial, IVC Home, Lentex, Leoline, and Moduleo, Redbook, Unilin, and Vitromex brands. It offers its products to company-owned service centers and stores, company-operated distributors, floor covering retailers, wholesalers, mass merchandisers, department stores, shop at home, buying groups, ceramic tile specialists, e-commerce retailers, residential builders, independent distributors, commercial contractors, and commercial end users. The company was incorporated in 1988 and is headquartered in Calhoun, Georgia.

Today's Trend

Mohawk Industries, Inc. (NYSE: MHK) shares are trading higher as investors weigh a mixed batch of Zacks Research earnings-estimate revisions and positive long-term value commentary.

  • Zacks raised its EPS forecast for Q3 2026 to $2.53 from $2.47, Q2 2027 to $2.99 from $2.77, Q3 2027 to $2.79 from $2.78, and FY2027 to $9.85 from $9.70. These upward revisions suggest some improvement in analysts’ expectations for Mohawk’s medium-term earnings.
  • A Zacks analysis characterized Why Mohawk Industries Is a Top Value Stock for the Long-Term Mohawk as a potential long-term value stock, which may support investor interest following the company’s strong recent earnings performance.
  • The estimate changes were mixed overall. Zacks lifted Q2 2028 EPS to $3.34 from $3.20, but maintained a “Hold” rating, indicating that the research firm sees limited near-term conviction despite some earnings upgrades.
  • Zacks reduced its forecasts for Q4 2026 EPS to $1.71 from $1.83, Q1 2027 to $1.85 from $1.91, Q1 2028 to $2.31 from $2.46, and FY2028 to $11.66 from $11.84. These cuts temper the longer-term outlook and could limit upside.

Overall, the stock’s strength appears to be driven by improved near- and medium-term earnings expectations and value-oriented investor interest. However, the “Hold” rating and several forecast reductions show that the outlook remains mixed. Mohawk’s previous quarter also showed solid momentum, with revenue up 6.8% year over year and EPS well above consensus.

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