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Fortune Brands Home & Security, Inc. (FBHS - Snapshot Report), the home and security products providing company, is slated to report fourth-quarter and full-year 2013 results on Jan 29, 2014. In the last quarter, it posted a positive surprise of 12.2%. Let’s see how things are shaping up for this announcement.

Growth Factors this Past Quarter

The Ill-based company posted strong third-quarter 2013 results, driven by the spate of new construction in recent times and improvement in the Repair & Remodel market. The year-over-year increase in top line was primarily boosted by improvement in the housing market. Fortune Brands also registered double-digit sales growth across all of its segments with an improved adjusted operating margin mainly backed by a fall in selling, general & administrative (SG&A) expenses as a percentage of sales.

Earnings Whispers?

Our proven model does not conclusively show that Fortune Brands is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, #2 or #3 for this to happen. This is not the case here, as you will see below.

Negative Zacks ESP: ESP for Fortune Brands is -2.70%. This is because the Most Accurate estimate stands at 36 cents, while the Zacks Consensus Estimate is pegged at 37 cents.

Zacks Rank #4 (Sell): Fortune Brands’ Zacks Rank #4 when combined with a negative ESP makes surprise prediction difficult. We caution against stocks with a Zacks Rank #4 and #5 (Sell rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.

Stocks that Warrant a Look

Here are some other companies you may want to consider as our model shows these have the right combination of elements:

The Home Depot, Inc. (HD - Analyst Report) has an Earnings ESP of +1.39% and a Zacks Rank #2 (Buy).

Abercrombie & Fitch Co. (ANF - Analyst Report) has an Earnings ESP of +1.96% and a Zacks Rank #2 (Buy).

Texas Roadhouse, Inc. (TXRH - Snapshot Report) has an Earnings ESP of +4.35% and a Zacks Rank #2 (Buy).

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