Things that make life handier sure can be a good theme for stock picking, don’t you think? This is especially so, now that household growth in the U.S.appears accelerating and new home construction is rising along with a pick up in activity in the residential resale market.
Going by this line of thought, Energizer Holdings, Inc. (NYSE:ENR) should be a fine candidate. After all, most of the 117 million households in the U.S. can’t do without the items that this company manufactures and markets.
Iconic among consumers for its Energizer Holdings, Inc. (NYSE:ENR) bunny, this company’s output not only includes primary batteries and portable lighting, but also personal care products for men, women, and babies. Among its brands are Eveready and Energizer for batteries, Schick for wet shave products, Banana Boat for skin care, and Playtex for feminine and infant care.
Better margins, better earnings
Stanley shows the power
Stanley Black & Decker, Inc. (NYSE:SWK) is another handyman for many households, which too can be an asset in a stock portfolio. Hand and power tools, along with their related accessories, are the domain of this company. It is a merger of two long-standing firms, Connecticut-based Stanley founded in 1852 and Maryland-based Black & Decker established in 1910.
CDIY (construction & do-it-yourself), industrial, and security are its business segments. In addition to security, the company has identified several growth platforms including healthcare, engineered fastening, and infrastructure. Several acquisitions have already been made in pursuit of this strategy.
CDIY, which includes products for home construction, repair, and remodeling, accounts for about half of the company’s revenue. In the first quarter of 2013, this segment contributed nearly $1.2 billion to the $2.5 billion sales for the period, which were 3% higher than a year earlier. The company reported EPS of $1.03 for the first quarter, $0.70 above analysts’ estimate. Last year, the U.S. accounted for 48% of the company’s revenue; Europe brought 27%, emerging markets 15%, and Canada 6%.
Jarden Corp (NYSE:JAH) has whatever you need
Another imprint that American homes won’t likely be without are the products manufactured or sourced, marketed, and distributed by Jarden. Its branded consumable products range from Bee and Bicycle playing cards, Mapa gloves and Quickie cleaning brushes and pads, to Tundra fire extinguishers and Ball air fresheners. It also offers an array of consumer solutions such as Oster toasters and blenders, and Sunbeam flatirons and coffeemakers.
The company’s business extends to outdoors solutions, among which are Rowlings baseball gloves and Coleman recreational products. Process solutions on custom-designed monofilament, zinc, plastic, and electronic products for industrial customers round out Jarden Corp (NYSE:JAH)’s business universe.
Jarden’s net sales during the first quarter of 2013 rose 4% to $1.58 billion from $1.5 billion in the 2012 quarter. Analysts at The Street rate the company a buy due to its sales growth and sound stock price performance. Jarden Corp (NYSE:JAH) shares, which hit a 52-week high of $49.28 on May 15, also rank as a favorite of some analysts due to the company’s active stock buyback program.
Dividend aristocrat rules
Market sentiments are also bullish on Energizer Holdings, Inc. (NYSE:ENR), which currently trades in a 52-week band of $64.36-$102.94. Its P/E ratio of 15 also looks more attractive than Jarden Corp (NYSE:JAH)’s 27. By the same token, many analysts also favor Stanley Black & Decker, Inc. (NYSE:SWK) which trades at around 15 times its earnings, too.
At the final bell, it is Stanley though that may be the most preferred choice among this trio of handymen because of its diversification and enviable dividend record. Having a current yield of 2.41% and $1.96 annualized dividend, this company paid cash dividends totaling $304 million in 2012. With this, it extended its record of having the longest consecutive payments of annual and quarterly dividends among NYSE-listed industrial companies.
Final take
In conclusion, a stock portfolio stands to benefit in maintaining equities with direct pipelines to households. This is even more so now that the U.S. economy is picking up steam as seen not only in new homes being built, but also in an accelerated activity in the residential resale market.
Arturo Cuevas has no position in any stocks mentioned. The Motley Fool recommends Energizer Holdings.
The article Time to Pick Your Home Handyman originally appeared on Fool.com.
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