Newell Brands (NWL): Assessing Valuation After Earnings Miss and Full-Year Guidance Cut

Newell Brands (NWL) drew strong investor attention after releasing third-quarter results that missed expectations and cutting its full-year outlook. The company’s share price slumped following earnings, as higher tariffs and softer consumer demand weighed on performance.

See our latest analysis for Newell Brands.

After missing earnings expectations and slashing its outlook, Newell Brands saw a rapid shift in investor sentiment, with the share price tumbling 36.6% over the past week and losing more than two-thirds of its value year-to-date. The total shareholder return paints an even starker picture, down 61% in the last year and nearly 80% over five years. Negative momentum has built up as operational challenges and tariff-driven headwinds weigh on the longer-term recovery narrative.

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With the stock trading near multi-year lows and sentiment at a low point, investors are left to wonder if Newell Brands is now undervalued or if the market has already factored in all the risks and future prospects.

Most Popular Narrative: 49.8% Undervalued

Compared to Newell Brands’ last close at $3.23, the most popular narrative assigns a fair value of $6.43. This perspective highlights a dramatic gap between current sentiment and future potential, setting the stage for transformative catalysts.

"The company is capitalizing on global trade shifts and tariff realignments, leveraging its extensive North American manufacturing footprint (with $2 billion invested and untapped capacity), which is allowing it to secure long-term distribution gains and market share from retailer reshuffling. This is positioned to lift top-line sales and improve net margins as supply chain efficiencies increase."

Read the complete narrative.

Curious which bold projections fuel this huge valuation gap? The underlying narrative banks on powerful turnarounds in profitability, margin, and scale that could catch the market off guard. Find out which numbers support a price target nearly double today’s level, before everyone else does.

Result: Fair Value of $6.43 (UNDERVALUED)

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

However, persistent declines in core sales or unexpected shifts in consumer demand could easily disrupt this optimistic narrative and challenge Newell’s turnaround story.

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

Build Your Own Newell Brands Narrative

If you’re not sold on this outlook or want to run your own numbers, you can put together a custom narrative using your own perspective in just a few 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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