Goldman Sachs’ Stocks With Highest Consensus Returns: 42 Stocks With The Highest Consensus ROE

35. Mohawk Industries, Inc. (NYSE:MHK)

Consensus ROE: 6%

Number of Hedge Fund Investors in Q2 2024: 40

Mohawk Industries, Inc. (NYSE:MHK) is a specialty building products company. The firm makes and sells tiles, roofing, and flooring products. Consequently, Mohawk Industries, Inc. (NYSE:MHK)’s fate is tied to the broader construction industry. This sector thrives when interest rates are low as building companies are able to undertake ambitious construction projects. Yet, Mohawk Industries, Inc. (NYSE:MHK) has remained a standout in the industry as its stock is up 51% year to date. These gains come on the back of a 28% jump in July after the building products company’s second quarter earnings emphasized tight management cost control. During the quarter, while Mohawk Industries, Inc. (NYSE:MHK)’s revenue dropped by 5.1% to $2.8 billion, its earnings per share grew by 9% annually and beat analyst estimates. Management added that the firm should recognize $25 million in additional cost savings this year.

Ariel Investments mentioned Mohawk Industries, Inc. (NYSE:MHK) in its Q2 2024 investor letter. Here is what the fund said:

“In contrast, manufacturer and distributor of floorcovering products, Mohawk Industries, Inc. (NYSE:MHK) underperformed this quarter, as consumer demand and pricing remain under pressure due to secular headwinds in the housing market. In a difficult environment, management is successfully executing on cost savings and productivity initiatives, while also preparing the business for share gains as demand recovers. In our view, MHK’s healthy balance sheet and progress managing through economic cycles position the company to benefit from long-term growth in residential remodeling, new home construction and commercial projects.”