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At US$27.01, Is It Time To Put Newell Brands Inc. (NASDAQ:NWL) On Your Watch List?

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·3 min read
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Newell Brands Inc. (NASDAQ:NWL) saw significant share price movement during recent months on the NASDAQGS, rising to highs of US$29.34 and falling to the lows of US$24.88. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Newell Brands' current trading price of US$27.01 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the 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 there are any catalysts for a price change.

See our latest analysis for Newell Brands

What's the opportunity in Newell Brands?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 11.13% above my intrinsic value, which means if you buy Newell Brands today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth $24.30, then there isn’t really any room for the share price grow beyond what it’s currently trading. Furthermore, Newell Brands’s low beta implies that the stock is less volatile than the wider market.

What kind of growth will Newell Brands generate?

earnings-and-revenue-growth
earnings-and-revenue-growth

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. However, with a relatively muted profit growth of 8.7% expected over the next year, growth doesn’t seem like a key driver for a buy decision for Newell Brands, at least in the short term.

What this means for you:

Are you a shareholder? It seems like the market has already priced in NWL’s future outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping tabs on NWL, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

If you want to dive deeper into Newell Brands, you'd also look into what risks it is currently facing. Case in point: We've spotted 2 warning signs for Newell Brands you should be aware of.

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.

This article by Simply Wall St is general in nature. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.