Spectrum Brands Holdings (SPB) Showing Signs Of Being Strong And Under The Radar

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Spectrum Brands Holdings ( SPB) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Spectrum Brands Holdings as such a stock due to the following factors:

  • SPB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.9 million.
  • SPB is making at least a new 3-day high.
  • SPB has a PE ratio of 35.2.
  • SPB is mentioned 1.42 times per day on StockTwits.
  • SPB has not yet been mentioned on StockTwits today.
  • SPB is currently in the upper 20% of its 1-year range.
  • SPB is in the upper 35% of its 20-day range.
  • SPB is in the upper 45% of its 5-day range.
  • SPB is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on SPB:

Spectrum Brands Holdings, Inc., together with its subsidiaries, operates as a consumer products company worldwide. The company operates through Global Batteries & Appliances, Global Pet Supplies, Home and Garden Business, and Hardware & Home Improvement segments. The stock currently has a dividend yield of 1.4%. SPB has a PE ratio of 35.2. Currently there are 4 analysts that rate Spectrum Brands Holdings a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Spectrum Brands Holdings has been 259,800 shares per day over the past 30 days. Spectrum has a market cap of $4.5 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 0.55 and a short float of 4.4% with 6.45 days to cover. Shares are up 22.5% year-to-date as of the close of trading on Thursday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Spectrum Brands Holdings as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income, expanding profit margins, solid stock price performance and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:
  • SPB's revenue growth has slightly outpaced the industry average of 5.8%. Since the same quarter one year prior, revenues slightly increased by 3.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Household Products industry. The net income increased by 116.0% when compared to the same quarter one year prior, rising from $36.13 million to $78.05 million.
  • 40.58% is the gross profit margin for SPECTRUM BRANDS HOLDINGS INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 6.91% trails the industry average.
  • Powered by its strong earnings growth of 113.04% and other important driving factors, this stock has surged by 38.22% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • SPECTRUM BRANDS HOLDINGS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SPECTRUM BRANDS HOLDINGS INC swung to a loss, reporting -$1.06 versus $0.92 in the prior year. This year, the market expects an improvement in earnings ($4.24 versus -$1.06).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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