Newell Brands (NWL) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Newell Brands (NWL) closed at $15.87 in the latest trading session, marking a -0.69% move from the prior day. This move lagged the S&P 500's daily loss of 0.01%. Meanwhile, the Dow lost 0.1%, and the Nasdaq, a tech-heavy index, added 0.12%.

Heading into today, shares of the consumer products company had lost 6.88% over the past month, lagging the Consumer Staples sector's gain of 2.16% and the S&P 500's gain of 2.24% in that time.

NWL will be looking to display strength as it nears its next earnings release. In that report, analysts expect NWL to post earnings of $0.06 per share. This would mark a year-over-year decline of 82.35%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.68 billion, down 44.27% from the year-ago period.

NWL's full-year Zacks Consensus Estimates are calling for earnings of $1.59 per share and revenue of $8.37 billion. These results would represent year-over-year changes of +23.26% and -14.97%, respectively.

Investors might also notice recent changes to analyst estimates for NWL. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 23.15% lower. NWL is holding a Zacks Rank of #4 (Sell) right now.

Investors should also note NWL's current valuation metrics, including its Forward P/E ratio of 10.04. Its industry sports an average Forward P/E of 15.4, so we one might conclude that NWL is trading at a discount comparatively.

Also, we should mention that NWL has a PEG ratio of 2.06. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Consumer Products - Staples industry currently had an average PEG ratio of 2.52 as of yesterday's close.

The Consumer Products - Staples industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 86, which puts it in the top 34% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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