Fortune H&S (FBHS) Shares Tick Higher as Cramer Becomes Bullish
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Price: $61.90 --0%
Rating Summary:
12 Buy, 13 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 14 | Down: 24 | New: 9
Rating Summary:
12 Buy, 13 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 14 | Down: 24 | New: 9
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Shares of Fortune Brands Home & Security (NYSE: FBHS) are higher Thursday following bullish comments from sapient securities scholar Jim Cramer on his CNBC show Mad Money Wednesday evening.
Cramer initially likes how FBHS is more focused on things for the home -- compared with the old Fortune which focused on several areas from golf to whiskey. About 20 percent of FBHS's sales come from new contracts, while 35 percent are from remodeling projects. The other 45 percent comes from brand sales dedicated to the home and home security, such as MasterLock, MasterBrand, Waterloo, and Moen.
FBHS has a solid model, according to Cramer. He notes the average age of U.S. homes is about 40 years, leaving room for plenty on fix-it-up projects. However, aggressive cost-cutting and streamlined supply chain have given FBHS plenty of leverage should new home construction pick up.
About 17 percent of overall sales comes from its smaller international business. Should FBHS make a broader push into emerging markets like China, Brazil, and elsewhere, shareholders will certainly benefit over the long run.
With FBHS coming off of annual highs recently, the stock is going for about 22.6 times earnings. Though this number might be concerning, Cramer points to a strong expected growth rate around 22 percent. The play on the stock would be to buy on any pullbacks, and to not chase shares higher.
Ahead of the bell Thursday, FBHS shares are about 3 percent better.
Cramer initially likes how FBHS is more focused on things for the home -- compared with the old Fortune which focused on several areas from golf to whiskey. About 20 percent of FBHS's sales come from new contracts, while 35 percent are from remodeling projects. The other 45 percent comes from brand sales dedicated to the home and home security, such as MasterLock, MasterBrand, Waterloo, and Moen.
FBHS has a solid model, according to Cramer. He notes the average age of U.S. homes is about 40 years, leaving room for plenty on fix-it-up projects. However, aggressive cost-cutting and streamlined supply chain have given FBHS plenty of leverage should new home construction pick up.
About 17 percent of overall sales comes from its smaller international business. Should FBHS make a broader push into emerging markets like China, Brazil, and elsewhere, shareholders will certainly benefit over the long run.
With FBHS coming off of annual highs recently, the stock is going for about 22.6 times earnings. Though this number might be concerning, Cramer points to a strong expected growth rate around 22 percent. The play on the stock would be to buy on any pullbacks, and to not chase shares higher.
Ahead of the bell Thursday, FBHS shares are about 3 percent better.
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