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On Mar 29, 2013, Zacks Investment Research upgraded Fortune Brands Home & Security, Inc. (FBHS - Snapshot Report) to a Zacks Rank #1 (Strong Buy).

Why the Upgrade?

With signs of recovery in the U.S. housing and construction market, Fortune Brands Home & Security is now looking much stronger. Shares of this provider of home and security products for use in residential home repair, remodeling, new construction, and security have amassed an impressive year-to-date return of 21.8%.

Created in Oct 2011 by spinning off from Fortune Brands, the company expects 6% – 8% growth in 2013 for its home products in the U.S. market, banking upon the resurgence of the housing sector.

Moreover, the company whose brands include Master Lock, MasterBrand cabinets, Simonton windows and Therma-Tru entry door systems, has outperformed the Zacks Consensus Estimate in 4 out of 5 quarters. Fortune Brands Home & Security has beaten the Estimate by an average of 38.8% in the last 5 quarters. The long-term expected earnings growth rate for the stock is 16.6%.

In the last concluded quarter, it outpaced the Zacks Consensus Estimate by 4.6%. The company declared impressive fourth-quarter 2012 results on Jan 31, 2013, wherein earnings of 23 cents a share came a penny ahead of the Zacks Consensus Estimate and rose 35.3% from the prior-year quarter led by the 2 major housing segments, Kitchen & Bath Cabinetry and Plumbing.

Net sales of $947.9 million surpassed the Zacks Consensus Estimate of $927 million, and rose 8.2% year over year. Kitchen & Bath Cabinetry net sales climbed 12.5%, Plumbing & Accessories net sales jumped 14.9%, Advanced Material Windows & Door Systems net sales inched up 1.4%, but Security & Storage net sales fell 4%.

Management forecasted high-single-digit growth in net sales, and projected earnings between $1.13 and $1.23 per share.

Buoyed by healthy results, the Zacks Consensus Estimate for 2013 rose 3.5% to $1.19 per share over the last 60 days. For 2014, the Zacks Consensus Estimate advanced 8.5% over the same timeframe to $1.54 per share.

Other Stocks to Consider

The stocks worth considering in the non-food retail, wholesale sector include Lumber Liquidators Holdings Inc. (LL - Snapshot Report), Macy’s, Inc. (M - Analyst Report) and Cabela’s Incorporated (CAB - Analyst Report), all of which carry a Zacks Rank #1 (Strong Buy).

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