Yahoo Finance What Is Newell Brands Inc.'s (NASDAQ:NWL) Share Price Doing?
Newell Brands Inc. (NASDAQ:NWL), might not be a large cap stock, but it saw a decent share price growth of 14% on the NASDAQGS over the last few months. Shareholders may appreciate the recent price jump, but the company still has a way to go before reaching its yearly highs again. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Let’s take a look at Newell Brands’s outlook and value based on the most recent financial data to see if the opportunity still exists.
See our latest analysis for Newell Brands
Is Newell Brands Still Cheap?
According to our valuation model, Newell Brands seems to be fairly priced at around 19% below our intrinsic value, which means if you buy Newell Brands today, you’d be paying a fair price for it. And if you believe that the stock is really worth $9.65, then there’s not much of an upside to gain from mispricing. In addition to this, Newell Brands has a low beta, which suggests its share price is less volatile than the wider market.
What does the future of Newell Brands look like?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Though in the case of Newell Brands, it is expected to deliver a negative revenue growth of -0.09% over the next couple of years, which doesn’t help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.
What This Means For You
Are you a shareholder? NWL seems fairly priced right now, but given the uncertainty from negative returns in the future, this could be the right time to reduce the risk in your portfolio. Is your current exposure to the stock beneficial for your total portfolio? And is the opportunity cost of holding a negative-outlook stock too high? Before you make a decision on the stock, take a look at whether its fundamentals have changed.
Are you a potential investor? If you’ve been keeping an eye on NWL for a while, now may not be the most optimal time to buy, given it is trading around its fair value. The price seems to be trading at fair value, which means there’s less benefit from mispricing. In addition to this, the negative growth outlook increases the risk of holding the stock. However, there are also other important factors we haven’t considered today, which can help gel your views on NWL should the price fluctuate below its true value.
Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. In terms of investment risks, we've identified 2 warning signs with Newell Brands, and understanding these should be part of your investment process.
If you are no longer interested in Newell Brands, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.