Fortune Brands Home & Security, Inc. (FBHS)

FBHS stock forecast: buy or sell

FBHS stock outlook

  • Fortune Brands Home & Security rose a 1.76% after marking new all-time highs on Friday
  • Fortune Brands Home & Security made public its financial report on July 29
  • Fortune Brands Home & Security, Inc., together with its subsidiaries, provides home and security products for residential home repair, remodeling, new construction, and security applications.
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Disclaimer:
The viewpoints written in this post are personal and not recommendations for you to buy or sell shares. The author of this paper does not have any knowledge of the specific scenarios of the reader, his or her finances or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Thoughts are posted for general educational reasons only

FBHS stock chart overview

Should I buy Fortune Brands Home & Security stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is FBHS stock a buy?

Currently, Fortune Brands Home & Security stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean we expect a selloff for FBHS in the next few days, or that it may not climb higher. Simply, it doesn't match our recommended trading systems

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Should I sell Fortune Brands Home & Security stock?

When you are a novel trader and you own stock shares with some profit, it's really hard to decide the correct moment to sell and get your profits. Trading strategies give us the ability us to avoid impulsive decisions based on our sentiments or the buzz surrounding the market. We like very simple setups to guide us on when is a good time to sell our shares. Be aware that these setups should not be used for selling short Fortune Brands Home & Security stock

As a golden rule, you should never keep an open trade that shows a losses greater than those expected by the time of the buy. The timing to sell your stock must always be determined by the stop-loss (automatic or manual)

Is it time to sell Fortune Brands Home & Security stock?

In the current situation of Fortune Brands Home & Security there is not any eligible sell setup, so Fortune Brands Home & Security stock holders with operations in profit can keep their positions

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Analysts' recommendations to buy or sell Fortune Brands Home & Security stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last month, 4 analyst ratings were published for Fortune Brands Home & Security

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Fortune Brands Home & Security ratings

Brokerage firmRating
Jul 30th, 2020
Credit Suisse Group Neutral
Jul 30th, 2020
Deutsche Bank Strong buy
Jul 30th, 2020
Jefferies Financial Group Strong buy
Jul 30th, 2020
Royal Bank of Canada

Technical analysis

Since in late March, Fortune Brands Home & Security has been printing an uptrend that by now marked a gorgeous 136.33%. The price action shows higher peaks and higher troughs, and along the way provided some buying opportunities for those who wanted to invest. Latest low was in mid-June, when price bounced at $56.03. Fortune Brands Home & Security broke out above $67.97 (its last top) on July 15. That breakout was a good buy point that resulted in a 17.42% profit

FBHS at All-time Highs

Fortune Brands Home & Security did it again, and reached new all-time highs (ATH) on Friday at $79.97. Stock surged fast in the last 10 sessions, cracking new all-time highs 5 times

SMAs overview

A favorite tool of many technical analysts are the moving averages, that easily show market momentum. A moving average is the average price of a stock over a set period of time. Moving averages are usually calculated on different periods depending on the trading timeframe 21, 50, 100 and 200 days are the most usual moving averages. You can found more about Moving Averages from sources like Wikipedia and Investopedia

Supports and resistances

Traders use supports and resistances as a way to find price points on a chart that may work as obstacles, containing the price of a stock to move in certain direction. Supports are levels where the price tends to stop as it falls. This means that the price is more likely to "bounce off" this level rather than break through it. Nevertheless, if the price breaks down the support, it is likely to continue falling until finding another support level. In contrast, resistances are where the price tends to find resistance as it moves up. Likewise, this means that the price is more liable to "rebound" at this level, and if it finally crosses this level, the price will rally more easily until it approaches the next resistance

Price is at highs and there are not upper resistance levels.

The current support levels are:

  • S1: $72.74 (-8.86% below)
  • S2: $70.79 (-11.3% below)
  • S3: $67.97 (-14.84% below)
  • Bollinger bands

    This is an indicator that was designed in the 1980s by John Bollinger. Fundamentally, the Bollinger Bands are bands that fluctuate around a centralmoving averagediffering in distance from the bottom to the top depending on market volatility. They are usually drawn by an offset of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    The price is moving near to the upper Bollinger band, poiting some level of overbought in recent sessions. This is not a bearish indicator, as price can move in these levels for many days and weeks

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of stock markets. It is intended to plot the current and previous strength or weakness of a stock or market based on the closing prices of a recent trading period. Oscillator indicators, such as relative strength, are designed to indicate values in the range of 0-100. The relative strength indicator is one of the best known and most widely used indicators, and it was invented by J. Welles Wilder in the late 1970s

    Relative strength (RSI) climbed over the overbought line Friday, with a reading of 75.31. The fact that the relative strength (RSI) value is in the overbought zone does not in any way imply a sell point, as stocks can be above 70 for many, many weeks and may continue to rise

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    Earnings and financials

    Q2 investors event was hosted by FBHS on July 29 after presenting the financial report. FBHS surpassed market estimates and posted an EPS of $0.94, that is a 56.67% increase compared to the previous forecasts of $0.60. Reported revenues were $1.4 billion compared to estimates of $1.3 billion.

    Compared to the same quarter last year, EPS was $1.03, so posted EPS means a reduction of -8.74%. Looking at sales, figures went down a -8.72% compared to $1.5B same quarter 12 months ago.

    FBHS will host the Q3 earnings call next October. Forecasted earnings of %s a share for this quarter is $1.01. Earnings reporting day has a more than usual risk for stock investors as the data disclosed can jump up or down the stock price with exceptionally low liquidity and not honouring your buy or stop-loss orders. You can find more details about the earnings call and the financial reports on the Investor Relations section of its website: http://www.fbhs.com.

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