We issued an updated research report on Fortune Brands Home & Security, Inc. (FBHS - Free Report) on Jun 14.
This security and safety service provider currently carries a Zacks Rank #3 (Hold). Its market capitalization is approximately $7.3 billion.
Let’s delve deeper and discuss the company’s potential growth drivers and possible headwinds.
Factors Favoring Fortune Brands
Share Price Performance, Earnings Projections: Market sentiments seem to be working in favor of Fortune Brands over time. In the past three months, the company’s share price has gained 15.8%, higher than the industry’s growth of 11.4%.
We believe that impressive financial results helped in driving sentiments for the stock. Regal Beloit in the last reported quarter (first-quarter 2019) recorded positive earnings surprise of 6.78%. Its share has increased 6.7% since the results released on Apr 24, 2019.
For 2019, the company anticipates gaining from solid growth opportunities for the segments (explained below), synergistic gains from acquired assets, product innovations and capacity expansion. Revenues for the year are predicted to increase 6-7.5% on a year-over-year-basis while earnings are predicted to grow 9% to $3.53-$3.77 per share.
Also, the Zacks Consensus Estimate for the company’s earnings was revised upward for Fortune Brands. It currently is pegged at $3.66 for 2019 and $4.02 for 2020, reflecting growth of 0.8% and 0.5% from the 60-day-ago figures.
Fortune Brands Home & Security, Inc. Price and Consensus