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Should Value Investors Buy Newell Brands (NWL) Stock?
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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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on 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 is trading with P/E ratio of 12.71 right now. For comparison, its industry sports an average P/E of 21.12. 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 10.33.
NWL is also sporting a PEG ratio of 2.12. 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 PEG compares to its industry's average PEG of 3.19. NWL's PEG has been as high as 3.14 and as low as 1.44, with a median of 2.01, all within the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. NWL has a P/S ratio of 0.99. This compares to its industry's average P/S of 1.23.
Finally, investors will want to recognize that NWL has a P/CF ratio of 3.06. 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 7.68. Over the past 52 weeks, NWL's P/CF has been as high as 3.06 and as low as 1.70, with a median of 2.34.
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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Should Value Investors Buy Newell Brands (NWL) Stock?
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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on 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 is trading with P/E ratio of 12.71 right now. For comparison, its industry sports an average P/E of 21.12. 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 10.33.
NWL is also sporting a PEG ratio of 2.12. 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 PEG compares to its industry's average PEG of 3.19. NWL's PEG has been as high as 3.14 and as low as 1.44, with a median of 2.01, all within the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. NWL has a P/S ratio of 0.99. This compares to its industry's average P/S of 1.23.
Finally, investors will want to recognize that NWL has a P/CF ratio of 3.06. 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 7.68. Over the past 52 weeks, NWL's P/CF has been as high as 3.06 and as low as 1.70, with a median of 2.34.
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.