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Are Investors Undervaluing Newell Brands (NWL) Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 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 an A grade for Value. The stock has a Forward P/E ratio of 12.29. This compares to its industry's average Forward P/E of 21.51. Over the last 12 months, NWL's Forward P/E has been as high as 15.26 and as low as 8.64, with a median of 10.52.
Investors should also note that NWL holds a PEG ratio of 2.05. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NWL's PEG compares to its industry's average PEG of 2.30. Within the past year, NWL's PEG has been as high as 3.14 and as low as 1.44, with a median of 2.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. NWL has a P/S ratio of 0.94. This compares to its industry's average P/S of 1.42.
Finally, we should also recognize that NWL has a P/CF ratio of 4.71. 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. This stock's P/CF looks attractive against its industry's average P/CF of 11.57. Over the past 52 weeks, NWL's P/CF has been as high as 5.06 and as low as 1.77, with a median of 2.50.
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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Are Investors Undervaluing Newell Brands (NWL) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 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 an A grade for Value. The stock has a Forward P/E ratio of 12.29. This compares to its industry's average Forward P/E of 21.51. Over the last 12 months, NWL's Forward P/E has been as high as 15.26 and as low as 8.64, with a median of 10.52.
Investors should also note that NWL holds a PEG ratio of 2.05. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NWL's PEG compares to its industry's average PEG of 2.30. Within the past year, NWL's PEG has been as high as 3.14 and as low as 1.44, with a median of 2.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. NWL has a P/S ratio of 0.94. This compares to its industry's average P/S of 1.42.
Finally, we should also recognize that NWL has a P/CF ratio of 4.71. 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. This stock's P/CF looks attractive against its industry's average P/CF of 11.57. Over the past 52 weeks, NWL's P/CF has been as high as 5.06 and as low as 1.77, with a median of 2.50.
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.