39.59 -0.04 (-0.1%) Sell

Waiting to invest in FBHS? Avoid at the moment as it was among the worst performers

13 min read

FBHS was among the worst performers today. On a longer term basis, investors in FORTUNE BRANDS HOME & SECURITY, INC. made -0.02% per day. Tuesday's performance of -0.1% was a underperformance compared to it's daily average.

[Themes containing FBHS]

FBHS showed a strong bearish trend over the last 3 months. During this period FBHS delivered -28.56% and saw a maximum drawdown of -28.56%. There was a short signal during this period which returned +25.72%.


FBHS has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 28 Jul, 2016 to 8 Nov, 2018. Over the last 2 years 11 months and 14 days, FBHS underperformed the SP500 index on 49% days. Which indicates that on days FBHS underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

FBHS returned losses on 62% days in the last three months. During this time, it delivered on average -0.5% per day. It delivered it's worst daily return of -11.1%, during this period, on Friday, 26 Oct, 2018. The longest stort-term trend during this period was 6 losing days, which started on 24 Sep, 2018 and ended on 1 Oct, 2018. This bearish trend lost -5.43% of investor capital.

The last 12 months saw FBHS's investors making profits in 3 months and incurring losses in 9 months. FBHS was less consistent in delivering monthly returs than SP500 index. FBHS was also a more risky investment than SP500 index as it's worst month in the last year, Feb 2018, returned -14.48% compared to -7.75% returned by SP500 index in Dec 2018. FBHS had a longer winning streak of losing months than SP500 index. It went down in 5 straight months (from Aug 2018 to Dec 2018) during which period it delivered -35.99%. It is interesting to note that both FBHS and SP500 index significantly outperform during months when quarterly/annual results are announced.

Try not to become a man of success. Rather become a man of value.
-- Albert Einstein

FBHS is currently seeing overall fall in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in FBHS's volatility from 25 Sep, 2018 to 30 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 19 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that FBHS has significant positive skewness in it's return distribution. This indicates that investors can expect FBHS to recover from drawdowns quickly. Which makes FBHS a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

SP500 index has more chance of extreme outcomes than FBHS. Therefore, SP500 must receive a lower allocation than FBHS in your portfolio. SP500 index usually has shorter drawdown period than FBHS.

Based on your interest in FBHS you may find it interesting to know that IMTE and NVCN are highly volatile and therefore risky. Investors should consider limiting their exposure to these instruments (because of their volatile nature).

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