We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Should Value Investors Buy Newell Brands (NWL) Stock?
Read MoreHide Full Article
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Newell Brands (NWL - Free Report) . NWL is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 9.87, while its industry has an average P/E of 21.62. Over the past year, NWL's Forward P/E has been as high as 16.12 and as low as 7.56, with a median of 10.28.
NWL is also sporting a PEG ratio of 1.64. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. NWL's industry has an average PEG of 3.08 right now. Over the past 52 weeks, NWL's PEG has been as high as 3.14 and as low as 1.24, with a median of 2.11.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. NWL has a P/S ratio of 0.79. This compares to its industry's average P/S of 0.95.
Finally, we should also recognize that NWL has a P/CF ratio of 2.26. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. NWL's current P/CF looks attractive when compared to its industry's average P/CF of 6.37. Over the past 52 weeks, NWL's P/CF has been as high as 4.13 and as low as 1.62, with a median of 2.13.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Newell Brands is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, NWL feels like a great value stock at the moment.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Should Value Investors Buy Newell Brands (NWL) Stock?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Newell Brands (NWL - Free Report) . NWL is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 9.87, while its industry has an average P/E of 21.62. Over the past year, NWL's Forward P/E has been as high as 16.12 and as low as 7.56, with a median of 10.28.
NWL is also sporting a PEG ratio of 1.64. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. NWL's industry has an average PEG of 3.08 right now. Over the past 52 weeks, NWL's PEG has been as high as 3.14 and as low as 1.24, with a median of 2.11.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. NWL has a P/S ratio of 0.79. This compares to its industry's average P/S of 0.95.
Finally, we should also recognize that NWL has a P/CF ratio of 2.26. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. NWL's current P/CF looks attractive when compared to its industry's average P/CF of 6.37. Over the past 52 weeks, NWL's P/CF has been as high as 4.13 and as low as 1.62, with a median of 2.13.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Newell Brands is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, NWL feels like a great value stock at the moment.