Bull's Eye Report: Prestige Brands Holdings (PBH)

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.

Why We Like The Stock:

Prestige Brands Holdings (PBH) 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 strong technical set-up. PBH has been a steady gainer this year, and recently piqued our interest after a huge spike higher in early July. Since then, it has consolidated back down and formed solid support at $31, a price which it has tested and held on multiple occasions. PBH’s long- and intermediate-term uptrends are still intact, and it looks poised to move higher from here. PBH crossed above its 5-, 10-, and 18-day moving averages late last week, which is a bullish sign. The stock hit intraday highs of $36 in mid-July, so we’re looking for a move back to that area in the coming weeks. We’d give PBH a little leeway with a closing stop at $31.23, and pick it up at current prices for a short-term move higher.

We Would Be Buyers:

At the current price (~$32.63).

Company Profile:

Prestige Brands Holdings is a holding company. The company, along with its subsidiaries, is engaged in the marketing, sales and distribution of over-the-counter healthcare and household cleaning brands to mass merchandisers, drug stores, supermarkets, club and dollar stores primarily in the United States and Canada.

Stock Rating: 8.5

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.