Bull’s Eye Report: Fortune Brands Home & Security

Try FBHS for 11% upside

   

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 FBHS Building Products 9.7 +30.36% $38.11

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) in a positively trending sub-industry. Building products stocks have been outperformers this year, and while the majority of peer stocks like Masco Corp. (MAS), Owens Corning (OC), Lennox Intl. (LII), and A.O. Smith (AOS) are trading alongside each other, FBHS may be the most attractive trading opportunity. In mid-May, FBHS flirted with the $44 level before pulling back in early June back down to its 50-day moving average. Currently, the stock is priced around $39.50 and has recently crossed back above its 50- and 5-day moving averages. With a nice base just above $38, short-term potential to $44 (+11.4% higher), and some recent upward momentum, FBHS looks like a great short-term trading opportunity at current prices.

We Would Be Buyers:

At the current price (~$39.86).

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.

Stock Rating: 9.7

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 Bull's Eye Report: Fortune Brands Home & Security

Fortune Brands Home & Security – Last 12 Months

FBHS 2 Bull's Eye Report: Fortune Brands Home & Security

Fortune Brands Home & Security – Last Five Years

chart not avail1 Bull's Eye Report: Fortune Brands Home & Security
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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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