Fortune Brands Home & Security Inc. (FBHS): Today's Most Compelling Stock Buy

By
A A A


 

SoTM Bull's Eye Report - Today's Most Compelling Buy
Wednesday, April 10, 2013

At StateoftheMarkets.com, we strive to "own the best and ignore the rest" in our equity portfolios. Toward this end, each day we search our database for a "top stock" (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical "set up" and a good entry point.

In short, when our equity team is looking to add a stock to one of our portfolios, the "bull's eye" stock shown below is generally their first choice.



Company


Symbol


Industry

Stock
Rating

YTD
% Gain
S.T.
Stop
Loss
Fortune Brands Home & Security Inc FBHS Building Products 9.2 +12.04% $33.76

Why We Like The Stock:

Fortune Brands Home & Security Inc (FBHS) is our most compelling buy today due to the fact that it is a top- rated stock (in terms of earnings strength and company/industry performance) in a strong sub-industry. Building Products have been hot since the beginning of 2012, as major players like Masco Corp (MAS), Owens Corning (OC), Lennox Intl (LII), and FBHS all sport intermediate-term uptrends. Since Fortune Brands spun off its Home & Security business into FBHS in October of 2011, the stock has been straight up on a weekly basis, with a few short-term periods of sideways action in 2012. More recently, FBHS opened above $38 in mid-March, marking its all-time high. Since then, the stock pulled back to the $34 area, though it has just crossed back above its 5- and 10-day moving averages this week. Should the stock continue its march higher following this brief pullback, it could shoot right back up to $38. With a stop at last Friday's open, we like FBHS at current prices for a move back to recent highs, and thereafter should it continue its intermediate-term uptrend.
We Would Be Buyers:

At the current price (~$35.50), or on a pullback to the 5-day moving average at $34.73.

Looking to trade the Bull's Eye stock picks? Click here to download our free Special Report, "How We Identify Our “Bull’s Eye” Picks & How You Can Profit Trading Them"
Company Profile:

Fortune Brands Home & Security, Inc. is engaged in home and security products. The Company operates through four business segments: Kitchen & Bath Cabinetry, Plumbing & Accessories, Advanced Material Windows & Door Systems, and Security & Storage. The Kitchen & Bath Cabinetry segment manufactures custom, semi-custom, and stock cabinetry for the kitchen, bath, and other parts of the home. Plumbing & Accessories segment manufactures and assembles faucets, accessories, and kitchen sinks The Advanced Material Windows & Door Systems segment manufactures and sells fiberglass and steel entry door systems. The Security & Storage segment provides locks, safety, and security devices and electronic security products. The Company was formed as a wholly owned subsidiary of Beam, Inc., formerly Fortune Brands, until it was spun-off on October 3, 2011 and operates independently.

Stock Rating:

The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 - 10 with 10 being the highest.

Disclosure:

At the time of publication the editor and affiliated companies own the following positions: None

Note: Positions may be bought or sold while this publication is in circulation without notice.

  Fortune Brands Home & Security Inc - Last 3 Months

  Fortune Brands Home & Security Inc - Last 12 Months

  Fortune Brands Home & Security Inc - Last 5 Years

 

 

The analysis and information in this report and on our website is for informational purposes only. No part of the material presented in this report or on our websites is intended as an investment recommendation or investment advice. Neither the information nor any opinion expressed nor any Portfolio constitutes a solicitation to purchase or sell securities or any investment program. The opinions and forecasts expressed are those of the editors of StateoftheMarkets.com and may not actually come to pass. The opinions and viewpoints regarding the future of the markets should not be construed as recommendations of any specific security nor specific investment advice. Stocks should always consult an investment professional before making any investment.

Any investment decisions must in all cases be made by the reader or by his or her investment adviser. Do NOT ever purchase any security without doing sufficient research. There is no guarantee that the investment objectives outlined will actually come to pass. All opinions expressed herein are subject to change without notice. Neither the editor, employees, nor any of their affiliates shall have any liability for any loss sustained by anyone who has relied on the information provided.

The analysis provided is based on both technical and fundamental research and is provided 'as is' without warranty of any kind, either expressed or implied. Although the information contained is derived from sources which are believed to be reliable, they cannot be guaranteed.

The information contained in our websites and StateoftheMarkets.com publications is provided by Ridge Publishing Co. Inc. (Ridge). One of the principals of Ridge, Mr. David Moenning, is also President and majority shareholder of Heritage Capital Management, Inc. (HCM) a Chicago-based money management firm. HCM is registered as an investment adviser. HCM also serves as a sub-advisor to other investment advisory firms. Ridge is a publisher and has not registered as an investment adviser. Neither HCM nor Ridge is registered as a broker-dealer.

Employees and affiliates of HCM and Ridge may at times have positions in the securities referred to and may make purchases or sales of these securities while publications are in circulation. Editors will indicate whether they or HCM has a position in stocks or other securities mentioned in any publication. The disclosures will be accurate as of the time of publication and may change thereafter without notice.

Index returns are price only and do not include the reinvestment of dividends. The S&P 500 is a stock market index containing the stocks of 500 large-cap corporations, most of which are US companies. The index is the most notable of the many indices owned and maintained by Standard & Poor's, a division of McGraw-Hill. S&P 500 is used in reference not only to the index but also to the 500 companies that have their common stock included in the index.

Investments in equities carry an inherent element of risk including the potential for significant loss of principal. Past performance is not an indication of future results.



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 , Investing Ideas , Stocks , US Markets

Referenced Stocks: FBHS , LII , MAS , OC

David Moenning


More from David Moenning:

Related Videos

Tiny Homes With Big Appeal
Tiny Homes With Big Appeal          

Stocks

Referenced

100%
100%
0%
100%

Most Active by Volume

270,887,127
    $93.89 unch
225,243,115
  • $40.93 ▼ 2.74%
135,900,109
  • $47.52 ▲ 1.80%
89,467,924
  • $5.35 ▼ 1.11%
85,105,358
  • $16.95 ▼ 0.53%
80,748,539
  • $39.80 ▼ 4.21%
68,491,586
  • $3.57 ▼ 1.79%
62,097,356
  • $100.96 ▼ 0.82%
As of 9/19/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com