What Is Newell Brands Inc.'s (NASDAQ:NWL) Share Price Doing?

Newell Brands Inc. (NASDAQ:NWL), might not be a large cap stock, but it saw a double-digit share price rise of over 10% in the past couple of months on the NASDAQGS. Shareholders may appreciate the recent price jump, but the company still has a way to go before reaching its yearly highs again. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Today we will analyse the most recent data on Newell Brands’s outlook and valuation to see if the opportunity still exists.

Check out our latest analysis for Newell Brands

Is Newell Brands Still Cheap?

According to our valuation model, Newell Brands seems to be fairly priced at around 5.86% above our 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 $7.36, then there isn’t really any room for the share price grow beyond what it’s currently trading. What's more, Newell Brands’s share price may be more stable over time (relative to the market), as indicated by its low beta.

What kind of growth will Newell Brands generate?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. However, with an expected decline of -0.7% in revenues over the next couple of years, near-term growth certainly doesn’t appear to be a driver for a buy decision for Newell Brands. This certainty tips the risk-return scale towards higher risk.

What This Means For You

Are you a shareholder? Currently, NWL appears to be trading around its fair value, but given the uncertainty from negative returns in the future, this could be the right time to reduce the risk in your portfolio. Is your current exposure to the stock beneficial for your total portfolio? And is the opportunity cost of holding a negative-outlook stock too high? Before you make a decision on the stock, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping tabs on NWL for a while, now may not be the most advantageous time to buy, given it is trading around its fair value. The stock appears to be trading at fair value, which means there’s less benefit from mispricing. In addition to this, the negative growth outlook increases the risk of holding the stock. However, there are also other important factors we haven’t considered today, which can help gel your views on NWL should the price fluctuate below its true value.

Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. Every company has risks, and we've spotted 1 warning sign for Newell Brands you should know about.

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.

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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.