Is Masco Stock Underperforming the S&P 500?
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Valued at a market cap of around $16 billion, Masco Corporation (MAS) designs, manufactures, and distributes a wide range of home improvement and building products globally. The Livonia, Michigan-based company operates through two primary business segments: Plumbing Products and Decorative Architectural Products.
Companies valued at $10 billion or more are generally considered “large-cap” stocks, and Masco fits this criterion perfectly, exceeding the mark. Masco serves a diverse customer base, including plumbing and heating wholesalers, home centers, online retailers, and hardware stores. It continues to lead the industry with innovative and high-quality building solutions.
The building products & equipment manufacturer pulled back 14.5% from its 52-week high of $86.70. Shares of MAS are down 10.7% over the past three months, underperforming the broader S&P 500 Index's ($SPX) 5.4% rise in the same period.
Longer term, over the past six months, shares of Masco have risen 8.9%, lagging behind SPX's 10.9% increase. In addition, MAS has gained 10.3% over the past 52 weeks, compared to SPX's 27% return.
MAS has been bearish, trading below its 50-day moving average since late October.
Shares of Masco fell marginally on Oct. 29 as the company lowered the upper limit of its 2024 adjusted EPS guidance to $4.05 - $4.15 from $4.05 - $4.20, citing challenging market demand, which dampened investor confidence. Additionally, sales in the Decorative Architectural Products segment declined by 3% year over year, with DIY paint sales falling by mid-single digits, raising concerns about demand in this category. Despite reporting Q3 adjusted EPS of $1.08 and revenue of around $2 billion, matching consensus estimates, the cautious outlook contributed to the share dip.
Nevertheless, the stock’s rival, A. O. Smith Corporation (AOS), has seen a 15.7% dip over the past 52 weeks and an 18.4% decline over the past six months, lagging behind MAS' performances in both periods.
Despite MAS’ underperformance relative to SPX, analysts are moderately optimistic about the stock's prospects. The 18 analysts covering it have a consensus rating of “Moderate Buy,” and it is currently trading below the mean price target of $86.16.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.