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4-Star Stocks Poised to Pop: Fortune Brands

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Based on the aggregated intelligence of 120,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, diversified consumer products company Fortune Brands (NYSE: FO  ) has earned a respected four-star ranking. While five-star stocks have been the best performers, our data has shown that four-star stocks still outshine the market by a significant margin and shouldn't be taken lightly; conversely, low-rated stocks have woefully lagged the market average.

With that in mind, let's take a closer look at Fortune Brands' business, and see what CAPS investors are saying about the stock right now.

Fortune Brands facts

Headquarters (founded)

Deerfield, Illinois (1904)

Market Cap

$6.18 billion

Industry

Housewares and specialties

TTM Revenue

$7.51 billion

Management

CEO Bruce Carbonari (since 2008)
CFO Craig Omtvedt (since 2000)

Brands (segment)

Jim Beam (premium spirits), Moen (home and hardware), Titleist (golf)

Return on Equity (average last three years)

15.6%

Dividend Yield

4.5%

Competitors

Diageo (NYSE: DEO  )
Masco (NYSE: MAS  )

CAPS members bullish on FO also bullish on

Altria (NYSE: MO  )
Johnson & Johnson (NYSE: JNJ  )

CAPS members bearish on FO also bearish on

Citigroup (NYSE: C  )
Home Depot (NYSE: HD  )

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, 328 of the 361 members who have rated Fortune Brands -- some 91% -- believe the stock will outperform the S&P 500 going forward. These bulls include CAPS All-Star BSHumphreyII and LightningBub.

A couple days ago, BSHumphreyII summed up the bull case in simple terms: "Liquor, Titleists, Master Locks, AND a big yield? I'll buy."

In an earlier pitch from October, LightningBub shares that sentiment, highlighting Fortune Brands as a diversified path to long-term gains:

[Fortune Brands] has excellent and proactive management group that recognizes quality and diversifies its portfolio's as market trends change. Alcohol business solid. Short term business in golf (Foot Joy, Titleist ), Moen faucets, Cabinetry business etc will be down due to economic softness. ... Long term (2 - 5 year) play

What do you think about Fortune Brands, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 120,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

The Steve Jobs Betrayal
You may already know that in the final year of his life, Jobs revealed a stunning betrayal — and told his biographer, "I will spend my last dying breath... and every penny of Apple's $40 billion in the bank to right this wrong." What was it that made Jobs so irate — and why could it make a few in-the-know investors some major profits over the coming months and years?

Enter your email address below to find out what made Jobs so enraged!

Foolish contributor Brian Pacampara owns no position in any of the companies mentioned. Diageo, Masco, and Johnson & Johnson are Motley Fool Income Investor picks. Home Depot is a selection of Inside Value. The Fool's disclosure policy always gets a perfect score.


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Related Tickers

12/31/1969 7:00 PM
FO.DL $0.00 Down +0.00 +0.00%
Fortune Brands CAPS Rating: *****
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