SHW - Masco: Growth Acceleration Can Drive Medium-Term Upside
2024-07-21 11:11:38 ET
Summary
- Masco Corporation stock has performed well since my previous bullish article, gaining over 30%.
- Expectations for revenue recovery are low going into Q2 earnings, but stabilizing demand trends are expected.
- The company is gaining market share, benefiting from strength in PRO paints channel and secular demand trends in repair and remodeling sectors.
Investment Thesis
I previously covered Masco Corporation ( MAS ) last year with a buy rating. Despite the tough macroeconomic environment impacting its results since then, the stock has performed well, gaining over 30% thanks to its good margin performance. While I don't have high expectations around revenue recovery going into Q2 earnings, I expect to hear increasing commentary about stabilizing demand trends and sales bottoming, which should pave the way for eventual recovery towards the end of this year or early next. The company is also gaining market share and benefiting from strength in its PRO paints channel and from secular demand trends in the repair and remodeling sector, driven by aging housing stock and strong home equity levels....
Masco: Growth Acceleration Can Drive Medium-Term Upside