Last Updated: 10 Nov 2024
Executive Summary
Newell Brands Inc. (NWL) is a global consumer and commercial products manufacturer with a portfolio of well-known brands. Despite recent challenges, the company's fundamentals remain strong, with a solid balance sheet and a commitment to innovation. While the short-term outlook may be uncertain due to macroeconomic headwinds, analysts remain bullish on the company's long-term prospects.
Company Overview
Newell Brands is a leading provider of consumer and commercial products, including writing instruments, office supplies, home décor, and kitchenware. The company operates through three segments: Writing, Home Solutions, and Commercial Solutions. Newell Brands has a global presence with operations in over 100 countries.
Fundamental Analysis
Revenue: Revenue has been relatively stable in recent years, with a slight decline in the latest quarter.
Earnings: Earnings have been impacted by inflationary pressures and supply chain disruptions, resulting in a loss per share of $0.61 in the latest quarter.
Profitability: Profit margins have narrowed due to rising costs, but the company remains profitable.
Balance Sheet: Newell Brands has a strong balance sheet with low debt and ample liquidity.
Valuation: The company is currently trading at a forward PE ratio of 12.15, which is below the industry average.
Technical Analysis
Trend: The stock has been in a downtrend since early 2022.
Support and Resistance: The stock has found support at around $7.50 and resistance at around $9.50.
Moving Averages: The 50-day and 200-day moving averages are currently above the current price, indicating a potential reversal.
Short Term Outlook
The short-term outlook for Newell Brands is uncertain due to macroeconomic headwinds such as inflation and supply chain disruptions. The company may continue to face challenges in the near term.
Long Term Outlook
Analysts remain bullish on the company's long-term prospects. Newell Brands has a strong brand portfolio, a global presence, and a commitment to innovation. The company is well-positioned to benefit from the recovery in consumer spending and the growth of e-commerce.
Analyst Recommendations
Analysts have a mixed view on Newell Brands. One analyst has a buy rating with a target price of $9.40, while the majority have hold ratings. The consensus analyst recommendation is hold.
Conclusion
Newell Brands is a solid company with a strong balance sheet and a commitment to innovation. While the short-term outlook may be uncertain, analysts remain bullish on the company's long-term prospects. Investors may consider holding their positions or accumulating shares at current levels.
