Bear of the Day: Matthews International (MATW)

AAPL TSLA AMZN META AMD NVDA PEP COST ADBE GOOG AMGN HON INTC INTU NFLX ADP SBUX MRNA AAPL TSLA AMZN META AMD NVDA PEP COST ADBE GOOG AMGN HON INTC INTU NFLX ADP SBUX MRNA AAPL TSLA AMZN META AMD NVDA PEP COST ADBE GOOG AMGN HON INTC INTU NFLX ADP SBUX MRNA Stocks Bear of the Day: Matthews International (MATW) March 21, 2026 — 04:30 am EDT Written by Ethan Feller for Zacks-> Matthews International (MATW) is a provider of memorialization products, industrial technologies, and brand solutions. Its Memorialization segment offers products such as memorials, caskets, cremation-related items, and cremation and incineration equipment.

The Industrial Technologies segment designs, manufactures, and services high-tech energy storage solutions, product identification systems, and warehouse automation technologies. Meanwhile, its SGK Brand Solutions segment provides packaging solutions and brand experience services. The company is based in Pittsburgh.The stock has struggled in recent years as annual sales growth has deteriorated sharply. Revenue peaked in 2023 and has declined roughly 28% since then, reflecting both weaker demand and operational headwinds. Year to date, shares are down 8.1%, as analysts continue to revise earnings estimates lower.Further compounding the downside risk, MATW trades at a premium valuation relative to its current growth profile. With both earnings momentum and price action trending lower, Matthews International appears to lack a clear near-term catalyst. Until there is a material improvement in business fundamentals, this is a stock investors may want to avoid.Image Source: Zacks Investment ResearchMatthews International Stock Declines on DowngradesMatthews International has seen sharp downgrades to its earnings outlook, with analysts cutting current-quarter estimates by more than 50% and fiscal 2026 estimates by nearly 30%. As a result, MATW currently carries a Zacks Rank #5 (Strong Sell).Sales are expected to decline another 25% this year, and while estimates stabilize somewhat beyond that, analysts forecast only a modest 0.5% decline in 2027, which is hardly indicative of a meaningful recovery.The broader industry backdrop offers little support.

The Zacks Industry Rank for Funeral Services currently sits in the bottom 3% (236 out of 244), suggesting continued headwinds at the sector level.Image Source: Zacks Investment ResearchDespite Slowing Growth MATW Shares Trade at a PremiumDespite a weakening fundamental outlook, Matthews International currently trades at 30.6x forward earnings, its highest multiple in roughly a decade. Part of this is mechanical, as sharply lower earnings estimates inflate the multiple, but even on a normalized basis, the stock remains elevated at around 25x forward earnings.There is little justification for this premium given the company’s declining sales, negative earnings revisions, and lack of clear growth drivers. As a result, the valuation leaves the stock vulnerable to further downside, particularly if investors continue to reprice shares in line with the deteriorating outlook.Image Source: Zacks Investment ResearchShould Investors Avoid MATW Stock?Matthews International presents a challenging setup, with weakening fundamentals, persistent estimate cuts, and a stretched valuation. Unlike situations where a discounted multiple can offset near-term headwinds, MATW offers little margin of safety, increasing the risk of continued underperformance.Until earnings revisions stabilize and the company demonstrates a credible path back to growth, the risk-reward profile remains unfavorable. For now, investors may be better served focusing on stronger opportunities elsewhere in the market. Just Released: Zacks Top 10 Stocks for 2026 Hurry – you can still get in early on our 10 top tickers for 2026. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2026. You can still be among the first to see these just-released stocks with enormous potential.See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportMatthews International Corporation (MATW) : Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Tags StocksInvestingHow to Invest Zacks Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com. More articles by this source-> Stocks mentioned MATW More Related Articles This data feed is not available at this time. Data is currently not available • Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.