Spectrum Brands Hits New High - Analyst Blog

By
A A A

Shares of Spectrum Brands Holdings Inc. ( SPB ) hit a new 52-week high of $76.73 yesterday before closing at $75.58. The stock, which gathered momentum from its impressive first-quarter fiscal 2014 performance, has amassed a return of 50.9% over the past one year. .

The company currently trades at a forward P/E of 18.1x, a 4.1% premium to the peer group average of 17.39x. The last traded price is 3.9% below the Zacks Consensus average analyst price target of $78.67. Average volume of shares traded over the last 3 months stands at approximately 201.7K.

Investors remained optimistic about the stock's performance that saw its first-quarter earnings per share of $1.09 beating the Zacks Consensus Estimate of $1.02 and surged 39.7% year over year. The company's bottom-line results mainly benefited from top-line growth and improved margins.

On an average, the stock has delivered a positive earnings surprise of roughly 9.3% over the last 9 quarters. The company also has a long-term EPS growth of 16%, greater than the peer group growth rate of 11.9%, further adding optimism to the investors' outlook.

Moreover, consolidated net sales for the quarter came in at $1,100.6 million, up 26.5% from the year-ago comparable period of $870.3 million, driven by the acquisition of Hardware & Home Improvement (HHI) in Dec 2012.

This Zacks Rank #3 (Hold) stock also remains focus on boosting shareholders' value, as evident by its recent announcement of a 20% hike in quarterly dividend to 30 cents a share. This further underscores the company's financial position.

Spectrum Brands has been also emphasizing on expansions and acquisitions in order to drive long-term growth. Most recently, it ventured into a new product line with the acquisition of leading animal repellents company The Liquid Fence Company Inc., which will form a part of the company's St. Louis-based United Industries Home and Garden division.

Other than Spectrum Brands, Hanesbrands Inc. ( HBI ), DST Systems Inc. ( DST ) and Ultra Petroleum Corp. ( UPL ) also reached highs of $74.50, $93.34 and $24.25 respectively, on Jan 30, 2014.



DST SYSTEMS (DST): Free Stock Analysis Report

HANESBRANDS INC (HBI): Free Stock Analysis Report

SPECTRUM BRANDS (SPB): Free Stock Analysis Report

ULTRA PETRO CP (UPL): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: DST , HBI , SPB , UPL

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

Most Active by Volume

86,627,350
  • $61.80 ▼ 3.33%
58,636,005
  • $15.44 ▼ 1.03%
43,254,709
  • $64.8725 ▼ 0.15%
39,355,269
  • $3.38 ▲ 0.90%
39,064,711
  • $4.29 ▲ 1.42%
38,037,134
  • $95.035 ▼ 0.37%
36,100,193
  • $94.66 ▼ 0.32%
32,857,379
  • $26.20 ▼ 0.46%
As of 7/10/2014, 04:04 PM