Newell Rises 61.7% in a Year: Time to Buy, Sell or Hold the Stock?

Core Insights - The company is executing a corporate strategy focused on innovation, brand-building, and market excellence [1] - Newell Brands Inc. (NWL) has transitioned to a new operating model aimed at enhancing organizational effectiveness and agility [2] - The company is investing in new product propositions, such as Graco's SmartSense Soothing Bassinet and Mr. Coffee Perfect Brew, which are expected to drive sales and profitability [3] Financial Performance - The broader general merchandise market is anticipated to decline by low single digits in 2024, with NWL's net sales expected to decrease by 4-7% year-over-year for the fourth quarter [7] - Core sales are projected to drop by 2-5%, primarily due to adverse foreign currency impacts [7] - The normalized operating margin for the quarter is expected to be between 7-7.7%, with increased selling, general, and administrative expenses [7] Stock Performance - NWL stock has gained 61.7% over the past year, significantly outperforming the Consumer Staples sector's growth of 1.6% and the S&P 500 index's appreciation of 11.6% [11] - The stock is currently trading at a price/earnings ratio of 13.22, which is lower than the industry average of 22.29 and its median of 16.88 [15] Strategic Development - The company has seen sequential improvement in core sales growth for five consecutive quarters, particularly in its Learning & Development unit [13] - Newell's international business remains a key growth driver, bolstered by consumer-driven innovations [12] - Despite challenges in the Outdoor & Recreation segment and a tough macroeconomic environment, the company's strategies are expected to support future growth [16][17]