Spectrum Brands Holdings (SPB) Reaches New Lifetime High Today

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.

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 $19.7 million.
  • SPB has traded 10,525 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 1.4%. SPB has a PE ratio of 25. Currently there are 6 analysts that rate Spectrum Brands Holdings a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Spectrum Brands Holdings has been 344,000 shares per day over the past 30 days. Spectrum has a market cap of $5.1 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 0.29 and a short float of 3.9% with 4.16 days to cover. Shares are up 2.1% year-to-date as of the close of trading on Monday.

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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, notable return on equity, solid stock price performance and expanding profit margins. We feel its 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:
  • The revenue growth came in higher than the industry average of 9.9%. Since the same quarter one year prior, revenues slightly increased by 4.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
  • SPECTRUM BRANDS HOLDINGS INC's earnings per share declined by 18.8% 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 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 ($4.35 versus $4.04).
  • 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.
  • 39.08% is the gross profit margin for SPECTRUM BRANDS HOLDINGS INC which we consider to be strong. Regardless of SPB's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 2.60% trails the industry average.

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