A Look at Newell Brands’s (NWL) Valuation After Disappointing Q3 Results and Analyst Price Target Cuts

Newell Brands (NWL) just posted third quarter results that came in lighter than expected on both sales and earnings, capturing the attention of analysts and investors alike.

The latest financial update has drawn renewed focus on how the company plans to tackle ongoing challenges and regain momentum in the coming quarters.

See our latest analysis for Newell Brands.

Shares of Newell Brands have continued their slide, with a 1-day share price gain of 1.6% after earnings but still posting a steep 32.2% drop over the past month. Year-to-date, the share price has plummeted 67%, reflecting fading momentum as weak results and a cautious full-year outlook weigh on investor sentiment. This is despite ongoing efforts to boost innovation and engagement, such as the opening of its new Customer Experience Center.

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With shares trading near multi-year lows and analysts split on the turnaround prospects, the key question becomes whether Newell Brands now offers a compelling entry point or if the current price already reflects muted growth expectations.

Most Popular Narrative: 48.9% Undervalued

Newell Brands’ fair value calculation, according to the most widely followed narrative, suggests the stock is still trading at a meaningful discount to its intrinsic worth, despite the company’s ongoing challenges and the recent price tumble.

Portfolio optimization and cost-saving initiatives are enhancing operational efficiency, cash flow quality, and competitive positioning. This is taking place amidst shifting consumer and retail trends. Weak core sales, macroeconomic pressures, and reliance on tariffs threaten Newell's revenue recovery, competitive edge, and financial flexibility, increasing risks to future growth.

Read the complete narrative.

Wondering what’s driving such a bold upside call? The valuation hinges on a potentially powerful combination of margin expansion, steady revenue, and a future earnings leap that few expect. Find out what specific financial assumptions are baked in. The real surprise might be what’s just beneath the surface of this headline discount.

Result: Fair Value of $6.43 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing weak core sales and persistent macroeconomic pressures could undermine Newell’s turnaround efforts and challenge the underlying bullish narrative.

Find out about the key risks to this Newell Brands narrative.

Build Your Own Newell Brands Narrative

If the current perspective doesn't resonate with you, or you prefer your own deep dive, you can easily craft your personal view of Newell Brands in under three minutes, Do it your way

A great starting point for your Newell Brands research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.

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