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Should Value Investors Buy Newell Brands (NWL) Stock?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company value investors might notice is Newell Brands (NWL - Free Report) . NWL is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 8.03 right now. For comparison, its industry sports an average P/E of 19.06. Over the past 52 weeks, NWL's Forward P/E has been as high as 15.23 and as low as 5.93, with a median of 8.85.

Finally, investors will want to recognize that NWL has a P/CF ratio of 5.58. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. NWL's P/CF compares to its industry's average P/CF of 13.17. NWL's P/CF has been as high as 11.38 and as low as 4.42, with a median of 6.09, all within the past year.

These are just a handful of the figures considered in Newell Brands's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that NWL is an impressive value stock right now.


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