Bull’s Eye Report: Fortune Brands Home & Security (FBHS)

Try FBHS for a trade at current levels

   

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 9.8 +34.85% $40.34

Why We Like The Stock:

Fortune Brands Home & Security (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) with a positive technical set-up. Building products stocks have been outperformers this year, as shown in charts like Lennox Intl. (LII), A.O. Smith (AOS), and FBHS. FBHS has been trending higher since the company’s IPO in September 2011, only hitting mild speed bumps along the way. The stock traded up to $44 back in May, so there is likely to be a retest of resistance since FBHS is currently at $42.15. With solid support just above $38, a recent bounce off of its 50-day moving average, and an upswing in its short-term moving average, FBHS looks poised to test $44 again soon. And, if the past price action is any indicator, when FBHS breaks above resistance, it tends to run quite a ways.

We Would Be Buyers:

At the current price (~$42.15).

Company Profile:

Fortune Brands Home & Security, Inc. is engaged in home and security products with companies focused on the design, manufacture and sale of products in kitchen and bath cabinetry, plumbing and accessories, advanced material windows and entry door systems, and security and storage products. The kitchen and bath cabinetry segment manufactures custom, semi-custom, and stock cabinetry for the kitchen, bath, and other areas of the home. The plumbing and accessories segment manufactures and assembles faucets, accessories, and kitchen sinks. The advanced material windows and door systems segment manufactures and sells fiberglass and steel entry door systems. In June 2013, Fortune Brands Home & Security completed the acquisition of WoodCrafters Home Products.

Stock Rating: 9.8

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.

Fortune Brands Home & Security – Last Three Months

FBHS 1 Bulls Eye Report: Fortune Brands Home & Security (FBHS)

Fortune Brands Home & Security – Last 12  Months

FBHS 2 Bulls Eye Report: Fortune Brands Home & Security (FBHS)

Fortune Brands Home & Security – Last Five Years

chart not avail1 Bulls Eye Report: Fortune Brands Home & Security (FBHS)

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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.


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