Valued at a market cap of $14.3 billion, Masco Corporation (MAS) provides home improvement and building products to both professional contractors and DIY consumers. The Livonia, Michigan-based company’s extensive brand portfolio includes well-known names such as Delta and Hansgrohe faucets, Behr paint, Liberty hardware, and Hot Spring spas. 

Shares of this home improvement company have lagged behind the broader market over the past 52 weeks. MAS has declined 3.8% over this time frame, while the broader S&P 500 Index ($SPX) has gained 12.5%. Moreover, on a YTD basis, the stock is down 6.8%, compared to SPX’s 1.3% rise. 

Nonetheless, narrowing the focus, MAS has outpaced the SPDR S&P Homebuilders ETF’s (XHB) 5.7% downtick over the past 52 weeks. However, it has lagged behind the ETF’s 3.5% loss on a YTD basis. 

On Apr. 23, MAS shares plunged 3.4% following its weaker-than-expected Q1 earnings release. Both its revenue of $1.8 billion and adjusted profit of $0.87 per share fell short of the consensus estimates. Moreover, due to a decline in its plumbing and decorative architectural products sales, its overall revenue and profits fell 6.5% each from the year-ago quarter. MAS also cited significant challenges from the evolving geopolitical and macroeconomic landscape, including the introduction of new and broad-reaching tariffs, which negatively impacted the results. However, on a positive note, its gross margin improved by 20 basis points, driven by lower cost of sales resulting from the company’s pricing actions, cost-saving initiatives, and strategic sourcing changes.

For the current fiscal year, ending in December, analysts expect Masco’s EPS to decline 16.3% year over year to $3.43. The company’s earnings surprise history is mixed. It topped or met the consensus estimates in three of the last four quarters, while missing on another occasion. 

Among the 20 analysts covering the stock, the consensus rating is a “Moderate Buy” which is based on eight “Strong Buy,” 11 “Hold,” and one “Moderate Sell” rating. 

The configuration has remained fairly stable over the past three months. 

On May 14, Wells Fargo & Company (WFC) maintained an “Equal Weight” rating on MAS and raised its price target to $73, which indicates a 7.9% potential upside from the current levels. 

The mean price target of $69.22 represents a 2.3% premium from MAS’ current price levels, while the Street-high price target of $80 suggests an upside potential of 18.2%.