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Why Newell Stock Jumped 15.6% in a Week and Can It Keep Rising?
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Key Takeaways
NWL rallied after Q2 sales growth, a strong earnings beat and raised 2026 guidance boosted confidence.
Productivity, wider margins and distribution gains supported results beyond tariff-related recoveries.
Inflation, tariffs, soft category demand and elevated debt remain key risks for Newell Brands.
Newell Brands Inc. (NWL - Free Report) shares climbed 15.6% in a week as investors responded to clearer evidence of an operating turnaround. The company returned to year-over-year net and core sales growth for the first time in more than four years and raised its 2026 outlook.
The rally also reflected a large earnings beat, wider margins and improving distribution. The next leg higher, however, will depend on whether Newell can sustain growth after one-time tariff recoveries boosted second-quarter results.
Image Source: Zacks Investment Research
What Drove NWL's Weekly Rally?
Second-quarter net sales rose 3% year over year to $1.99 billion, topping the Zacks Consensus Estimate of $1.97 billion. Core sales increased 2.3%, with five of the company's six business units posting growth. The U.S. business grew about 5%, its first increase since the pandemic, while domestic distribution points advanced at a mid-single-digit rate.
Normalized earnings reached 42 cents per share, up from 24 cents a year earlier and well above the Zacks Consensus Estimate of 19 cents. Results included about 17 cents per share from recoveries tied to tariffs expensed in 2025 and another four cents from recoveries related to first-quarter 2026 tariffs. Even excluding both items, earnings would have exceeded the top end of management's original guidance.
Normalized gross margin increased to 40.8% from 35.6%, while normalized operating margin rose to 16.2% from 10.7%. Excluding the roughly $100 million recovery tied to 2025 tariffs, both measures still improved slightly year over year as productivity, higher sales and overhead discipline offset inflation and other tariff costs.
Can Newell Stock Keep Rising?
Newell raised its 2026 net sales growth outlook to 1-2% and now expects core sales to range from flat to up 1%. Normalized operating margin guidance increased to 10-10.4%, while normalized earnings guidance moved to 73-77 cents per share. For the third quarter, management expects net and core sales to grow 2-3%.
Image Source: Zacks Investment Research
The durability of the advance rests on innovation, distribution and cash generation. Newell plans more than 25 major innovation launches in 2026. Operating cash flow is projected at around $400 million, and management expects year-end net leverage to fall comfortably below 4.5 times.
Peer results show why execution still matters. Helen of Troy Limited (HELE - Free Report) , another branded consumer-products company, reported fiscal first-quarter 2027 sales growth but lower adjusted earnings, highlighting the pressure that costs and mix can place on profits. The Clorox Company (CLX - Free Report) has also been managing earnings pressure tied to inventory actions while investing in growth, underscoring the uneven backdrop for household-products companies.
Risks could limit further gains. Newell expects nearly $200 million of inflation and a $127 million net tariff burden in 2026, excluding refunds. Its categories are projected to decline about 1% for the year, debt remains near $5 billion and performance is uneven across segments.
The bottom line is that the weekly jump was supported by better underlying sales, an earnings beat and higher guidance, not solely by tariff recoveries. Continued distribution gains and productivity could support more upside, but investors will need evidence that second-half growth can withstand soft demand and elevated costs.
It also has a Value Score of A, Growth Score of B and VGM Score of A, which support its value and blended investment characteristics. The Momentum Score of F remains a caution despite the recent rally, suggesting that price strength has not yet translated into a favorable momentum profile.
View the Zacks #1 Rank List
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Why Newell Stock Jumped 15.6% in a Week and Can It Keep Rising?
Key Takeaways
Newell Brands Inc. (NWL - Free Report) shares climbed 15.6% in a week as investors responded to clearer evidence of an operating turnaround. The company returned to year-over-year net and core sales growth for the first time in more than four years and raised its 2026 outlook.
The rally also reflected a large earnings beat, wider margins and improving distribution. The next leg higher, however, will depend on whether Newell can sustain growth after one-time tariff recoveries boosted second-quarter results.
Image Source: Zacks Investment Research
What Drove NWL's Weekly Rally?
Second-quarter net sales rose 3% year over year to $1.99 billion, topping the Zacks Consensus Estimate of $1.97 billion. Core sales increased 2.3%, with five of the company's six business units posting growth. The U.S. business grew about 5%, its first increase since the pandemic, while domestic distribution points advanced at a mid-single-digit rate.
Normalized earnings reached 42 cents per share, up from 24 cents a year earlier and well above the Zacks Consensus Estimate of 19 cents. Results included about 17 cents per share from recoveries tied to tariffs expensed in 2025 and another four cents from recoveries related to first-quarter 2026 tariffs. Even excluding both items, earnings would have exceeded the top end of management's original guidance.
Normalized gross margin increased to 40.8% from 35.6%, while normalized operating margin rose to 16.2% from 10.7%. Excluding the roughly $100 million recovery tied to 2025 tariffs, both measures still improved slightly year over year as productivity, higher sales and overhead discipline offset inflation and other tariff costs.
Can Newell Stock Keep Rising?
Newell raised its 2026 net sales growth outlook to 1-2% and now expects core sales to range from flat to up 1%. Normalized operating margin guidance increased to 10-10.4%, while normalized earnings guidance moved to 73-77 cents per share. For the third quarter, management expects net and core sales to grow 2-3%.
Image Source: Zacks Investment Research
The durability of the advance rests on innovation, distribution and cash generation. Newell plans more than 25 major innovation launches in 2026. Operating cash flow is projected at around $400 million, and management expects year-end net leverage to fall comfortably below 4.5 times.
Peer results show why execution still matters. Helen of Troy Limited (HELE - Free Report) , another branded consumer-products company, reported fiscal first-quarter 2027 sales growth but lower adjusted earnings, highlighting the pressure that costs and mix can place on profits. The Clorox Company (CLX - Free Report) has also been managing earnings pressure tied to inventory actions while investing in growth, underscoring the uneven backdrop for household-products companies.
Risks could limit further gains. Newell expects nearly $200 million of inflation and a $127 million net tariff burden in 2026, excluding refunds. Its categories are projected to decline about 1% for the year, debt remains near $5 billion and performance is uneven across segments.
Newell Brands Inc. Price and Consensus
Newell Brands Inc. price-consensus-chart | Newell Brands Inc. Quote
NWL's Rank and Style Scores
The bottom line is that the weekly jump was supported by better underlying sales, an earnings beat and higher guidance, not solely by tariff recoveries. Continued distribution gains and productivity could support more upside, but investors will need evidence that second-half growth can withstand soft demand and elevated costs.
Newell currently sports a Zacks Rank #1 (Strong Buy), indicating favorable near-term earnings estimate revision trends. You can see the complete list of today’s Zacks #1 Rank stocks here.
It also has a Value Score of A, Growth Score of B and VGM Score of A, which support its value and blended investment characteristics. The Momentum Score of F remains a caution despite the recent rally, suggesting that price strength has not yet translated into a favorable momentum profile.