Why Masco Shares Surged

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of home-improvement and building products company Masco (NYSE: MAS  ) popped 15% today after its quarterly results topped Wall Street expectations.

So what: Masco's strong fourth-quarter results -- adjusted EPS of $0.04 on revenue growth of $14% -- reinforce recent optimism over a recovering U.S. housing market. In fact, sales and operating profits climbed in all five of Masco's business segments, the first time that has happened since the downturn, giving Wall Street plenty of confidence that the momentum will continue.

Now what: For 2013, management expects new home construction to grow at a strong pace, and repair/remodel to improve modestly. "We believe the actions we have taken over the past several years, including investing in our brands, reducing our cost structure and paying down debt, have strengthened our business," said President and CEO Tim Wadhams. "We believe these actions have positively positioned us to take advantage of the upturn in the housing cycle." Of course, with the stock hitting a new 52-week high today and up about 60% over the past six months alone, I'd wait for some of the excitement to fade before buying into that turnaround talk.

Interested in more info on Masco? Add it to your watchlist.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2251224, ~/Articles/ArticleHandler.aspx, 10/21/2014 3:57:26 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement