Wednesday, October 1, 2014

How Will Masco (MAS) Stock React Today to This Ratings Upgrade?

NEW YORK (TheStreet) --aMasco Corp. was upgraded to "overweight" from "neutral" at JPMorgan on Wednesday. The firm said it raised its rating on the company, which manufactures, distributes, and installs home improvement and building products, based on Masco's improved visibility and the likelihood it will repurchase more stock. JPMorgan upped its price target on Masco stock to $28.50 from $21. Must Read: Warren Buffett's 25 Favorite Stocks STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. Separately, TheStreet Ratings team rates MASCO CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: "We rate MASCO CORP (MAS) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations, impressive record of earnings per share growth and compelling growth in net income. 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 analysis by TheStreet Ratings Team goes as follows: MAS's revenue growth has slightly outpaced the industry average of 2.5%. Since the same quarter one year prior, revenues slightly increased by 5.2%. Growth in the company's revenue appears to have helped boost the earnings per share. MASCO CORP reported significant earnings per share improvement 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 ($1.01 versus $0.83). The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Building Products industry. The net income increased by 78.2% when compared to the same quarter one year prior, rising from $78.00 million to $139.00 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. Net operating cash flow has increased to $305.00 million or 13.38% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -0.72%. You can view the full analysis from the report here: MAS Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.


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