Fortune Brands Innovations, Inc. (FBIN) Hits Fresh High: Is There Still Room to Run?
Have you been paying attention to shares of Fortune Brands Innovations (FBIN)? Shares have been on the move with the stock up 7% over the past month. The stock hit a new 52-week high of $80.91 in the previous session. Fortune Brands Innovations has gained 6.1% since the start of the year compared to the 29.7% move for the Zacks Retail-Wholesale sector and the 52.2% return for the Zacks Retail - Home Furnishings industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on January 30, 2024, Fortune Brands Innovations reported EPS of $0.95 versus consensus estimate of $0.93 while it missed the consensus revenue estimate by 1.86%.
For the current fiscal year, Fortune Brands Innovations is expected to post earnings of $4.22 per share on $4.89 billion in revenues. This represents a 7.93% change in EPS on a 5.8% change in revenues. For the next fiscal year, the company is expected to earn $4.91 per share on $5.15 billion in revenues. This represents a year-over-year change of 16.34% and 5.29%, respectively.
Valuation Metrics
Fortune Brands Innovations may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Fortune Brands Innovations has a Value Score of B. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 19.2X current fiscal year EPS estimates, which is a premium to the peer industry average of 14.8X. On a trailing cash flow basis, the stock currently trades at 13.8X versus its peer group's average of 7.9X. Additionally, the stock has a PEG ratio of 3.34. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Fortune Brands Innovations currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Fortune Brands Innovations fits the bill. Thus, it seems as though Fortune Brands Innovations shares could still be poised for more gains ahead.
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Fortune Brands Innovations, Inc. (FBIN) : Free Stock Analysis Report
