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Analyst Blog

Shares of Spectrum Brands Holdings Inc. (SPB - Snapshot Report) hit a new 52-week high of $76.73 yesterday before closing at $75.58. The stock, which gathered momentum from its impressive first-quarter fiscal 2014 performance, has amassed a return of 50.9% over the past one year. .

The company currently trades at a forward P/E of 18.1x, a 4.1% premium to the peer group average of 17.39x. The last traded price is 3.9% below the Zacks Consensus average analyst price target of $78.67. Average volume of shares traded over the last 3 months stands at approximately 201.7K.

Investors remained optimistic about the stock’s performance that saw its first-quarter earnings per share of $1.09 beating the Zacks Consensus Estimate of $1.02 and surged 39.7% year over year. The company’s bottom-line results mainly benefited from top-line growth and improved margins.

On an average, the stock has delivered a positive earnings surprise of roughly 9.3% over the last 9 quarters. The company also has a long-term EPS growth of 16%, greater than the peer group growth rate of 11.9%, further adding optimism to the investors’ outlook.

Moreover, consolidated net sales for the quarter came in at $1,100.6 million, up 26.5% from the year-ago comparable period of $870.3 million, driven by the acquisition of Hardware & Home Improvement (HHI) in Dec 2012.

This Zacks Rank #3 (Hold) stock also remains focus on boosting shareholders’ value, as evident by its recent announcement of a 20% hike in quarterly dividend to 30 cents a share. This further underscores the company’s financial position.

Spectrum Brands has been also emphasizing on expansions and acquisitions in order to drive long-term growth. Most recently, it ventured into a new product line with the acquisition of leading animal repellents company The Liquid Fence Company Inc., which will form a part of the company’s St. Louis-based United Industries Home and Garden division.

Other than Spectrum Brands, Hanesbrands Inc. (HBI - Analyst Report), DST Systems Inc. (DST - Analyst Report) and Ultra Petroleum Corp. (UPL - Analyst Report) also reached highs of $74.50, $93.34 and $24.25 respectively, on Jan 30, 2014.

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