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Sep 28, 2019
Building Materials supplier Masco trending higher behind solid earnings growth

Building Materials supplier Masco trending higher behind solid earnings growth

Masco Corp (NYSE: MAS) manufactures and distributes home improvement and building products. The company’s plumbing product line includes Delta Faucets, Peerless, Hot Spring, and Elan as well as others. The Decorative Architectural Product line includes the brand names of Behr, Kilz, and Franklin Brass. The Cabinetry line includes Kraftmaid, Cardell, and Merrillat. Masco is headquartered in Livonia, Michigan and was founded in 1929.

The stock has been trending higher since December and is up over 50% since then. Strong earnings growth has helped the stock move higher. Masco has seen earnings grow by 24% per year over the last three years and they were up by 16% in the most recent quarterly report.

The company’s return on equity is a little questionable with both the Wall Street Journal and Investor’s Business Daily not showing an ROE while Yahoo Finance shows one that is ridiculous at 789%. Excluding that indicator, the return on assets is at 13.95%, the profit margin is 13.1%, and the operating margin is 15.04%

The Tickeron SMR rating for Masco is 1 and that indicates very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents.

The Tickeron Valuation Rating of 2 indicates that Masco is seriously undervalued in the industry. A rating of 1 points to the most undervalued stocks, while a rating of 100 points to the most overvalued stocks. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. Masco is currently trading at a P/E ratio of 16.74 and that is well below the average stock in the industry.

Looking at the chart for Masco we see how the stock has rallied off the December low. You can also see how a trend channel has formed over the last four months with the lower rail connecting the lows from June and August while the upper rail connects the highs from July and September. The gap higher in July did push the stock through the upper rail for a day, but then the stock slipped back.

One of the more encouraging signs for Masco for me was the bullish crossover from the daily stochastic readings on September 26. In each of the last three instances where the indicators have been in oversold territory and made a bullish crossover the stock has rallied over 14% within the next month or two.

We also see that the stock crossed above its 50-day moving average toward the end of August and appears to be using the trend line as support at this time.

Turning our attention to the sentiment toward Masco, there are 16 analysts covering the stock currently with 10 “buy” ratings and six “hold” ratings. This puts the buy percentage at 62.5% and that is below the average buy percentage. What is really interesting about Masco is how the ratings have changed. Just three months ago there were 21 analysts covering the stock and there were 18 “buy” ratings and only three “hold” ratings, putting the buy percentage at 85.7%. This suggests that not only is the buy percentage below average, but analysts have become considerably less bullish as the stock has rallied.

The short interest ratio for the stock is currently at 2.4 which is slightly below average and indicates slightly more optimism than the average stock. The short interest did drop from the end of August through the first half of September.

Masco is set to announce earnings again on October 30. The report will be worth keeping an eye on as it was earnings that created the big gap higher in July and the big gap lower in April.

Related Ticker: MAS

Contributor

Harry Richardson — Algorithmic Trader & Strategy Developer Harry is an algorithmic trader specializing in impulse and breakout trading strategies across cryptocurrency and equity markets. With more than 10 years of experience in developing automated trading systems, he focuses on building structured algorithms designed to capture momentum while maintaining strict risk control. His approach combines quantitative analysis, real-market execution, and continuous performance monitoring. Vitalii prioritizes risk management, drawdown control, and strategy stability over short-term optimization, ensuring algorithms are adaptable to changing market conditions. He has developed and tested hundreds of automated strategies, working extensively with live trading environments, forward testing, and portfolio-level algorithm management. His work centers on transforming trading ideas into fully operational, scalable automated systems.


MAS in -2.60% downward trend, sliding for three consecutive days on August 21, 2026

Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where MAS declined for three days, in of 288 cases, the price declined further within the following month. The odds of a continued downward trend are .

Price Prediction Chart

Technical Analysis (Indicators)

Bearish Trend Analysis

The Momentum Indicator moved below the 0 level on August 17, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on MAS as a result. In of 76 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .

The Moving Average Convergence Divergence Histogram (MACD) for MAS turned negative on July 29, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 45 similar instances when the indicator turned negative. In of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at .

MAS moved below its 50-day moving average on August 12, 2026 date and that indicates a change from an upward trend to a downward trend.

The 10-day moving average for MAS crossed bearishly below the 50-day moving average on August 10, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .

Bullish Trend Analysis

The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.

Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where MAS advanced for three days, in of 304 cases, the price rose further within the following month. The odds of a continued upward trend are .

MAS may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.

Fundamental Analysis (Ratings)

The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. MAS’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 74, placing this stock slightly better than average.

The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.000) is normal, around the industry mean (5.120). P/E Ratio (16.887) is within average values for comparable stocks, (35.240). Projected Growth (PEG Ratio) (1.897) is also within normal values, averaging (1.519). Dividend Yield (0.017) settles around the average of (0.014) among similar stocks. P/S Ratio (1.967) is also within normal values, averaging (2.457).

Notable companies

The most notable companies in this group are Johnson Controls International plc (NYSE:JCI), Owens Corning (NYSE:OC), Alpha Pro Tech Ltd (ASE:APT).

Industry description

The industry manufactures products used in the construction of residential and commercial buildings. The process involves using materials and other products, and processing them to create finished items such as doors, windows, light fittings, floor coverings, climate control products and other building components and home improvement products. Masco Corporation, Allegion PLC and Lennox International Inc. are major manufacturers of such products.

Market Cap

The average market capitalization across the Building Products Industry is 10.43B. The market cap for tickers in the group ranges from 14.02K to 99.77B. TT holds the highest valuation in this group at 99.77B. The lowest valued company is MTWD at 14.02K.

High and low price notable news

The average weekly price growth across all stocks in the Building Products Industry was 0%. For the same Industry, the average monthly price growth was 4%, and the average quarterly price growth was -3%. UUU experienced the highest price growth at 86%, while MAIR experienced the biggest fall at -17%.

Volume

The average weekly volume growth across all stocks in the Building Products Industry was 18%. For the same stocks of the Industry, the average monthly volume growth was -4% and the average quarterly volume growth was -17%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 57
P/E Growth Rating: 52
Price Growth Rating: 58
SMR Rating: 69
Profit Risk Rating: 74
Seasonality Score: -38 (-100 ... +100)
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General Information

a manufacturer of building and home improvement products

Industry BuildingProducts

Profile
Details
Industry
Building Products
Address
17450 College Parkway
Phone
+1 313 274-7400
Employees
18000
Web
https://www.masco.com
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