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Is Newell Brands (NWL) a Great Value Stock Right Now?

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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 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 company value investors might notice is Newell Brands (NWL). NWL is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 14.76. This compares to its industry's average Forward P/E of 22.55. Over the past 52 weeks, NWL's Forward P/E has been as high as 17.08 and as low as 11.54, with a median of 14.02.

Another valuation metric that we should highlight is NWL's P/B ratio of 2.99. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 5.14. NWL's P/B has been as high as 3.23 and as low as 1.89, with a median of 2.52, over the past year.

Finally, we should also recognize that NWL has a P/CF ratio of 11.85. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. NWL's P/CF compares to its industry's average P/CF of 15.03. NWL's P/CF has been as high as 12.83 and as low as 3.27, with a median of 9.06, all within the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that Newell Brands is likely undervalued currently. And when considering the strength of its earnings outlook, NWL sticks out at as one of the market's strongest value stocks.


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