Trade-Ideas: Spectrum Brands Holdings (SPB) Is Today's New Lifetime High Stock

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 new lifetime high 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 $36.8 million.
  • SPB has traded 1,861 shares today.
  • SPB is trading at a new lifetime high.

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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 1.3%. SPB has a PE ratio of 23.6. 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 313,300 shares per day over the past 30 days. Spectrum has a market cap of $5.0 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 0.22 and a short float of 3.9% with 2.19 days to cover. Shares are up 35.6% 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, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and notable return on equity. 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 1.3%. Since the same quarter one year prior, revenues slightly increased by 3.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 228.57% and other important driving factors, this stock has surged by 36.87% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, SPB should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • SPECTRUM BRANDS HOLDINGS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, SPECTRUM BRANDS HOLDINGS INC turned its bottom line around by earning $4.04 versus -$1.06 in the prior year. This year, the market expects an improvement in earnings ($4.60 versus $4.04).
  • 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 230.6% when compared to the same quarter one year prior, rising from -$36.71 million to $47.94 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Household Products industry and the overall market on the basis of return on equity, SPECTRUM BRANDS HOLDINGS INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.

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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