Mohawk Industries Outlook - Weak Technicals and Mixed Analyst Outlook

Mohawk Industries Outlook - Weak Technicals and Mixed Analyst Outlook

Market Snapshot

Takeaway: Current price is up 2.37% despite mixed analyst expectations, but technical indicators suggest caution.

News Highlights

• Trump Fast-Tracks Utah Uranium Mine: Uranium mining revival may depend on prices, affecting industrial demand and global supply chains.
• China Factory Activity Contracts: China’s PMI fell to 49.5 in May, still below the 50 threshold for contraction, but shows signs of stabilizing.
• REX Shares Files for Ethereum and Solana ETFs: May indicate renewed investor interest in crypto assets, potentially affecting broader market sentiment.

Analyst Views & Fundamentals

Average rating score: 3.40 (simple mean)

Weighted rating score: 2.69 (performance-weighted)

Consistency: Ratings are mixed, with recent ratings showing 3 "Neutral" and 2 "Buy" recommendations.

Analyst expectations are at odds with the recent price trend (up 2.37%). The market appears cautiously optimistic, but technical indicators signal caution. Here’s how the fundamentals stack up:

• EV/EBIT: 46.99 (internal diagnostic score: 2)
• ROE (diluted) (YoY growth rate %): 2.17% (internal diagnostic score: 2)
• ROA: 1.06% (internal diagnostic score: 1)
• PE: 53.08 (internal diagnostic score: 3)
• Shareholders’ equity attributable to parent company (growth rate compared to beginning of year %): 9.81% (internal diagnostic score: 2)
• Cash-UP: 3.67 (internal diagnostic score: 3)
• Net cash flow from operating activities / Total liabilities (%): 3.83% (internal diagnostic score: 2)
• CFOA: 1.50% (internal diagnostic score: 1)
• NPM: 5.23% (internal diagnostic score: 2)

Money-Flow Trends

Big-money trends are mixed: large and extra-large institutional flows are negative (Large: -ve, Extra-large: -ve), while medium and small flows are positive. This suggests that smaller investors are optimistic, but larger players remain cautious.

• Small Inflow Ratio: 51.03%
• Medium Inflow Ratio: 51.01%
• Large Inflow Ratio: 50.78%
• Extra-Large Inflow Ratio: 48.91%
• Overall Inflow Ratio: 49.60%

Key Technical Signals

Internal diagnostic score: 2.57 (suggesting the technical side is weak, and it is suggested to avoid it)

• MACD Death Cross: Internal diagnostic score: 7.17 (bullish bias)
• MACD Golden Cross: Internal diagnostic score: 1.1 (bearish bias)
• WR Overbought: Internal diagnostic score: 1 (bearish bias)
• RSI Overbought: Internal diagnostic score: 1 (bearish bias)

Recent Chart Patterns (Last 5 Days):

• 2025-09-02: MACD Death Cross (bullish signal)
• 2025-09-05: MACD Golden Cross and Shooting Star (bearish signals)
• 2025-09-04: WR Overbought (bearish signal)
• 2025-08-29: WR Overbought (bearish signal)
• 2025-09-08: RSI Overbought (bearish signal)

Key Insight: Bearish signals (MACD Golden Cross, WR Overbought, RSI Overbought) are dominant (3 bearish vs. 1 bullish), and technical indicators show a weak market state with risk of decline.

Conclusion

With mixed analyst ratings and weak technical signals, investors may want to proceed with caution. The recent price rise (2.37%) appears at odds with bearish chart signals and low internal diagnostic scores. Consider waiting for a pull-back or clearer bullish confirmation before entering long positions.