| Fortune Brands Home & Security is a holding company. Through its subsidiaries, Co. provides home and security products. Co.'s segments are: Plumbing, which manufactures or assembles and sells faucets, accessories, kitchen sinks and waste disposals; Outdoors and Security, which manufactures and sells fiberglass and steel entry door systems, storm, screen and security doors, composite decking and railing, and urethane millwork, as well as manufactures, sources and distributes locks, safety and security devices, and electronic security products; and Cabinets, which manufactures stock, semi-custom and custom cabinetry, as well as vanities, for the kitchen, bath and other parts of the home. |
When researching a stock like Fortune Brands Home and Security, many investors are the most familiar with Fundamental Analysis — looking at a company's balance sheet, earnings, revenues, and what's happening in that company's underlying business. Investors who use Fundamental Analysis to identify good stocks to buy or sell can also benefit from FBHS Technical Analysis to help find a good entry or exit point. Technical Analysis is blind to the fundamentals and looks only at the trading data for FBHS stock — the real life supply and demand for the stock over time — and examines that data in different ways. One of these ways is called the Relative Strength Index, or RSI. This popular indicator, originally developed in the 1970's by J. Welles Wilder, looks at a 14-day moving average of a stock's gains on its up days, versus its losses on its down days. The resulting FBHS RSI is a value that measures momentum, oscillating between "oversold" and "overbought" on a scale of zero to 100. A reading below 30 is viewed to be oversold, which a bullish investor could look to as a sign that the selling is in the process of exhausting itself, and look for entry point opportunities. A reading above 70 is viewed to be overbought, which could indicate that a rally in progress is starting to get crowded with buyers. If the rally has been a long one, that could be a sign that a pullback is overdue.