We are moving Mohawk Industries (MHK) from BUY to SELL
The company’s turnaround from its modest difficulties yet overly-depressed stock appears complete, and the shares have reached our 220 price target, although they have modestly retreated today. From here, this cyclical company would likely need several things to go right: enduring recovery in the residential market, stronger rebound in the commercial market, no more input cost inflation, no/minimal capacity increases within the flooring/ceramic industries, and no operational, legal or other problems over the next few quarters, at least. Some of these will no doubt go right, but needing all of them to go right is a bit too much to ask.
We are moving the shares from BUY to SELL. Based on mid-day prices, the investment produced a 54% profit.