On Jan 19, Zacks Investment Research upgraded
Fortune Brands Home & Security, Inc.
) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
Fortune Brands H&S has been witnessing rising earnings
estimates driven by strong fiscal third-quarter 2012 results and
an enhanced fiscal 2012 guidance. Moreover, this well-known
producer of home and security products delivered positive
earnings surprises in 3 of the last 4 quarters with an average
beat of 63.1%. The long-term expected earnings growth rate for
this stock is 16.3%.
On Oct 23, 2012, Fortune Brands H&S posted third quarter
2012 adjusted earnings of 29 cents per share, exceeding the Zacks
Consensus Estimate and year-ago quarters' earnings of 25 cents
and 20 cents, respectively. The year over year upbeat results
benefited from top-line growth and cost-saving actions.
Total revenue went up 7.2% to $909.0 million from the year-ago
quarter's level, primarily driven by higher sales volume from an
improving U.S. home products market, price increases and new
product launches. The results beat the Zacks Consensus Estimate
of $900.0 million.
Following the upbeat third quarter and improvement in the home
products market, management raised its earnings per share outlook
for 2012. The company now expects earnings per share to be
between 86 cents and 88 cents, up from the prior forecast of
The Zacks Consensus Estimate for fiscal 2012 increased 6.0% to
88 cents per share as most of the estimates were revised higher
over the last 90 days. The current estimate is at the higher end
of the company's guidance range. For fiscal 2013, estimates were
revised higher over the same time frame, lifting the Zacks
Consensus Estimate by 1.8% to $1.15 per share.
Other Stocks to Consider
Besides Fortune Brands H&S, other stocks that are
currently performing well include
American Woodmark Corporation
Virco Mfg. Corporation
Pier 1 Imports, Inc.
). All these companies carry a Zacks Rank #1 (Strong Buy) except
Pier 1 Imports, which holds a Zacks Rank #2 (Buy).
AMER WOODMARK (AMWD): Free Stock Analysis
FORTUNE BRD H&S (FBHS): Free Stock Analysis
PIER 1 IMPORTS (PIR): Free Stock Analysis
(VIRC): ETF Research Reports
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