Newell Brands Inc - A Turnaround Opportunity

Newell Brands Inc. (NWL) has been one of the most requested stocks that I’ve been asked to provide an analyze out loud video on. When I first looked at it, I had to wonder why people were so interested in this particular stock. Then I realized that statistically, it looks great. The company’s blended P/E ratio is quite low at 8.5 which is approximately half of what I would consider attractive, so valuation appears enticing. As a result, the dividend yield is 4.2% which is quite high in today’s interest rate environment. Moreover, the company only has 39% debt to capital which is also reasonable.

Nevertheless, I do consider the company too cyclical for my taste. On the other hand, the valuation is compelling. But, as I illustrated in the video, recent operating results have also been weak along with the stock price. Consequently, I would only consider the stock a turnaround opportunity rather than a blue-chip dividend growth stock. I will explain my position in the video.

                                                                   (Video length 00:10:11)

 

Disclaimer: The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.