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What Drove Fortune Brands (FBHS) to a New 52-Week High?
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Shares of Fortune Brands Home & Security, Inc. reached a new 52-week high of $66.35 during its trading session on Jun 26. This apex improved upon the last 52-week high of $66.09 on Jun 23.
In the last three months, the stock has yielded 8.64% return, outperforming the gain of just 3.81% seen by the Zacks categorized Protection Safety Equipment & Services industry.
On Jun 26, Fortune Brands closed its trading session at $65.90, yielding a year-to-date return of roughly 24%. The trading volume for the session was approximately 0.79 million shares. Positive earnings estimate revisions for 2017 and 2018, along with an expected earnings growth rate of 10.10% for the next five years indicate the stock’s potential for further price appreciation.
Growth Drivers
In each of the last four quarters, Fortune Brands reported better-than-expected results, with an average positive earnings surprise of 8.25%. In fact, the company pulled off an earnings surprise of 15.22% in first-quarter 2017. A sneak peek into the results reveals that improvement in profitability was achieved on the back of healthy segmental business and improvement in margin profile.
Notably, Fortune Brands expects the positive momentum to continue throughout 2017, driven by impressive first-quarter results and favorable tax rate expectations. It raised its 2017 earnings guidance to $3.00–$3.12 per share from the earlier projection of $2.95–$3.05. Also, the company anticipates the U.S. home products market to grow 6–7% in 2017 while the global market is expected to rise 5–6%. Management predicts sales growth to be in a band of 6–8% in the year.
In addition, Fortune Brands believes in making investments to develop new products and improve its services. In 2016, the company’s premium brands including MasterBrand Cabinets, Moen and Master Lock, expanded their product offerings by launching various innovative new products. Also, it formed a strategic platform – the Global Plumbing Group – to accelerate growth opportunities in its plumbing business. We believe these initiatives will bode well for the company in the quarters ahead. Also, the company’s share buyback programs, including $300 million approved in March and existing authorization of $196 million of earlier programs reflect the company’s shareholder friendly strategies.
Over the last 60 days, the Zacks Consensus Estimate for Fortune Brands Home & Security increased roughly 2.3% to $3.09 for 2017 and 1.2% to $3.43 for 2018. These estimates represent year-over-year growth of 12.27% for 2017 and 10.97% for 2018.
Fortune Brands Home & Security, Inc. Price and Consensus
With a market capitalization of $10.14 billion, Fortune Brands currently carries a Zacks Rank #2 (Buy). Other stocks worth considering in the industry include Lakeland Industries, Inc. (LAKE - Free Report) , Ituran Location and Control Ltd. (ITRN - Free Report) and MSA Safety Incorporated (MSA - Free Report) . While Lakeland Industries sports a Zacks Rank #1 (Strong Buy), both Ituran Location and Control and MSA Safety Incorporated carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Lakeland Industries’ earnings estimates for fiscal 2018 and fiscal 2019 were revised upward in the last 30 days. Also, the company’s average earnings surprise for the last four quarters was a positive 49.26%.
Ituran Location and Control’s earnings estimates for 2017 improved over the past 60 days.
MSA Safety Incorporated’s earnings estimates for 2017 and 2018 were revised upward in the last 60 days. Also, the company’s average earnings surprise for the last four quarters was a positive 7.77%.
Sell These Stocks. Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500.
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What Drove Fortune Brands (FBHS) to a New 52-Week High?
Shares of Fortune Brands Home & Security, Inc. reached a new 52-week high of $66.35 during its trading session on Jun 26. This apex improved upon the last 52-week high of $66.09 on Jun 23.
In the last three months, the stock has yielded 8.64% return, outperforming the gain of just 3.81% seen by the Zacks categorized Protection Safety Equipment & Services industry.
On Jun 26, Fortune Brands closed its trading session at $65.90, yielding a year-to-date return of roughly 24%. The trading volume for the session was approximately 0.79 million shares. Positive earnings estimate revisions for 2017 and 2018, along with an expected earnings growth rate of 10.10% for the next five years indicate the stock’s potential for further price appreciation.
Growth Drivers
In each of the last four quarters, Fortune Brands reported better-than-expected results, with an average positive earnings surprise of 8.25%. In fact, the company pulled off an earnings surprise of 15.22% in first-quarter 2017. A sneak peek into the results reveals that improvement in profitability was achieved on the back of healthy segmental business and improvement in margin profile.
Notably, Fortune Brands expects the positive momentum to continue throughout 2017, driven by impressive first-quarter results and favorable tax rate expectations. It raised its 2017 earnings guidance to $3.00–$3.12 per share from the earlier projection of $2.95–$3.05. Also, the company anticipates the U.S. home products market to grow 6–7% in 2017 while the global market is expected to rise 5–6%. Management predicts sales growth to be in a band of 6–8% in the year.
In addition, Fortune Brands believes in making investments to develop new products and improve its services. In 2016, the company’s premium brands including MasterBrand Cabinets, Moen and Master Lock, expanded their product offerings by launching various innovative new products. Also, it formed a strategic platform – the Global Plumbing Group – to accelerate growth opportunities in its plumbing business. We believe these initiatives will bode well for the company in the quarters ahead. Also, the company’s share buyback programs, including $300 million approved in March and existing authorization of $196 million of earlier programs reflect the company’s shareholder friendly strategies.
Over the last 60 days, the Zacks Consensus Estimate for Fortune Brands Home & Security increased roughly 2.3% to $3.09 for 2017 and 1.2% to $3.43 for 2018. These estimates represent year-over-year growth of 12.27% for 2017 and 10.97% for 2018.
Fortune Brands Home & Security, Inc. Price and Consensus
Fortune Brands Home & Security, Inc. Price and Consensus | Fortune Brands Home & Security, Inc. Quote
Zacks Rank & Other Stocks to Consider
With a market capitalization of $10.14 billion, Fortune Brands currently carries a Zacks Rank #2 (Buy). Other stocks worth considering in the industry include Lakeland Industries, Inc. (LAKE - Free Report) , Ituran Location and Control Ltd. (ITRN - Free Report) and MSA Safety Incorporated (MSA - Free Report) . While Lakeland Industries sports a Zacks Rank #1 (Strong Buy), both Ituran Location and Control and MSA Safety Incorporated carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Lakeland Industries’ earnings estimates for fiscal 2018 and fiscal 2019 were revised upward in the last 30 days. Also, the company’s average earnings surprise for the last four quarters was a positive 49.26%.
Ituran Location and Control’s earnings estimates for 2017 improved over the past 60 days.
MSA Safety Incorporated’s earnings estimates for 2017 and 2018 were revised upward in the last 60 days. Also, the company’s average earnings surprise for the last four quarters was a positive 7.77%.
Sell These Stocks. Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500.
See today's Zacks "Strong Sells" absolutely free >>.