Newell Brands
NWL
$6.25
+1.30%
Newell Brands Inc. is a diversified American consumer goods company with a portfolio of well-known brands including Rubbermaid, Sharpie, Graco, Coleman, Yankee Candle, and Paper Mate, operating across the Household & Personal Products industry. The company holds a strong market position as a brand aggregator with a broad distribution network, but has faced challenges in recent years due to changing consumer preferences and operational inefficiencies. Currently, the investor narrative centers on a potential turnaround, as recent Q2 results beat expectations, partly driven by one-time tariff refunds, while underlying sales growth suggests early signs of recovery. The stock has seen significant volatility, with a 39% jump on July 31, 2026, reflecting renewed optimism about the company's strategic initiatives and cost-cutting measures.…
NWL
Newell Brands
$6.25
Related headlines
Investment Opinion: Should I buy NWL Today?
Based on the analysis, NWL is rated a Hold. The consensus recommendation is 'hold' with an average target price of $5.59, implying only 0.1% upside from the current price of $5.60. The thesis is that the stock is fairly valued at current levels, with potential for upside if the turnaround gains traction, but significant risks remain. The low PS ratio of 0.22x and forward PE of 8.38x suggest that the market is pricing in a recovery, but the negative net margin and high debt (D/E 2.36) warrant caution. The stock has already rallied 50.5% YTD, and the easy gains may be behind it.
Sign up to view all
NWL 12-Month Price Forecast
The AI assessment is neutral with medium confidence. The stock's low PS ratio and forward PE suggest potential upside if the turnaround succeeds, but the negative net margin and high debt pose significant risks. The recent price surge may have priced in some good news, and the analyst consensus is cautious. The key factor to watch is whether the company can deliver sustainable organic growth and improve profitability. If Q3 results show strong revenue growth and margin expansion, the stance would upgrade to bullish. Conversely, if the company misses estimates or debt levels rise, the stance would become bearish.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Newell Brands's 12-month outlook, with a consensus price target around $6.66 and implied upside of +6.5% versus the current price.
Average Target
$6.66
0 analysts
Implied Upside
+6.5%
vs. current price
Analyst Count
—
covering this stock
Price Range
$5 - $11
Analyst target range
Newell Brands has coverage from 8 analysts, with a consensus recommendation of 'hold' and a mean recommendation score of 2.78 (where 1 is strong buy and 5 is sell). The average target price is $5.59, implying a slight upside of 0.1% from the current price of $5.60. The target range is wide, from a low of $3.50 to a high of $9.00, indicating high uncertainty about the company's future. The high target suggests optimism about a successful turnaround, while the low target reflects concerns about continued operational challenges and high debt. The recent price surge and positive Q2 results may lead to upward revisions, but the consensus remains cautious.
Bulls vs Bears: NWL Investment Factors
Newell Brands presents a classic turnaround scenario with conflicting signals. On the bull side, the stock has surged 50.5% YTD, trades at a deep discount on sales (PS 0.22x), and has a forward PE of 8.38x, implying earnings recovery. On the bear side, the company is still loss-making (net margin -3.96%), carries high debt (D/E 2.36), and analysts see limited upside (average target $5.59). The most important tension is whether the recent Q2 beat, partly driven by one-time tariff refunds, can translate into sustainable organic growth. If it can, the low valuation offers significant upside; if not, the stock could retest its lows. Currently, the evidence is balanced, but the positive price momentum and low PS ratio give a slight edge to the bulls, though the risk of disappointment remains high.
Bullish
- Significant YTD price recovery: NWL stock is up 50.5% year-to-date and 31.8% over the past six months, trading at $5.60. This strong momentum reflects improving investor sentiment and a successful rebound from the 52-week low of $3.07, indicating a potential turnaround.
- Deep valuation discount on sales: The price-to-sales ratio is 0.22x, significantly below the industry average, suggesting the market is pricing in substantial pessimism. If the company can stabilize earnings, this low multiple offers upside potential.
- Forward PE implies earnings recovery: The forward PE of 8.38x suggests the market expects earnings to recover, with estimated EPS of $1.17 for the next fiscal year. If achieved, this would represent a significant improvement from the current negative EPS of -$0.18.
- Positive Q2 surprise and tariff refunds: Q2 results beat expectations, partly due to one-time tariff refunds, but underlying sales growth hints at early recovery. This has sparked a 39% jump in the stock on July 31, 2026, reflecting renewed optimism.
Bearish
- Negative net income and ROE: NWL has a net margin of -3.96% and EPS of -$0.18, with ROE at -11.9%. This indicates ongoing profitability issues and a failure to generate shareholder returns, which could persist if the turnaround stalls.
- High debt burden: The debt-to-equity ratio is 2.36, indicating high leverage. This increases financial risk, especially if interest rates remain elevated, and could constrain the company's ability to invest in growth.
- Analyst consensus is cautious: With a consensus rating of 'hold' and an average target price of $5.59, analysts see only 0.1% upside from the current price. The wide target range ($3.50-$9.00) reflects high uncertainty about the company's future.
- Underlying sales growth may be weak: The Q2 beat was largely driven by one-time tariff refunds, not core operational improvements. Without sustained organic growth, the recent rally may be unsustainable.
NWL Technical Analysis
The prevailing price trend for Newell Brands is a recovery from a significant downtrend, with the stock currently trading at $5.60, up 50.5% year-to-date and 31.8% over the past six months. The stock is positioned at 78.6% of its 52-week range (between $3.07 and $7.13), indicating a strong rebound from the lows but still below the highs. This positioning suggests that while momentum is positive, the stock may face resistance near the upper end of its range, and the recovery could be vulnerable to profit-taking.
Beta
0.87
0.87x market volatility
Max Drawdown
-51.3%
Largest decline past year
52-Week Range
$3-$7
Price range past year
Annual Return
+5.6%
Cumulative gain past year
| Period | NWL Return | S&P 500 |
|---|---|---|
| 1m | +11.6% | +2.7% |
| 3m | +91.7% | +1.0% |
| 6m | +37.7% | +12.0% |
| 1y | +5.6% | +18.9% |
| ytd | +68.0% | +12.5% |
Bobby - Your AI Investment Partner
Get real-time data, AI-driven personalized investment analysis to make smarter investment decisions
NWL Fundamental Analysis
Newell Brands' revenue trajectory has been challenging, with the most recent quarterly revenue estimated at $7.91 billion (annualized), reflecting a decline from prior years. The company's net margin is negative at -3.96%, and EPS is -$0.18, indicating ongoing profitability issues. However, the gross margin of 33.8% is relatively stable, and the operating margin of 6.2% suggests some operational efficiency. The negative net income and ROE of -11.9% highlight the company's struggle to generate shareholder returns, though the positive ROA of 2.7% indicates some asset efficiency.
Quarterly Revenue
N/A
N/A
Revenue YoY Growth
N/A
YoY Comparison
Gross Margin
N/A
Latest Quarter
Free Cash Flow
N/A
Last 12 Months
Open an Account, get $2 TSLA now!
Valuation Analysis: Is NWL Overvalued?
Given the negative net income, the primary valuation metric selected is the price-to-sales (PS) ratio, which stands at 0.22x, significantly below the industry average. The forward PE of 8.38x suggests the market expects earnings to recover, but the trailing PE is negative, reflecting current losses. The EV-to-sales ratio of 1.07x and EV-to-EBITDA of 21.2x indicate that the company is valued at a premium on an EV basis, possibly due to its brand portfolio. Compared to the sector, Newell trades at a substantial discount on PS, which could be justified by its weak profitability and high debt levels.
PE
-5.5x
Latest Quarter
vs. Historical
N/A
5-Year PE Range 17x~59x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
19.9x
Enterprise Value Multiple
Investment Risk Disclosure
Financial and operational risks are substantial. Newell Brands is currently unprofitable with a net margin of -3.96% and EPS of -$0.18, indicating that the company is burning cash. The high debt-to-equity ratio of 2.36 amplifies financial risk, especially if interest rates remain elevated, as interest expenses could consume a significant portion of operating income. The operating margin of 6.2% provides some cushion, but it is thin, and any revenue decline could push the company deeper into losses. Additionally, the negative ROE of -11.9% suggests that shareholder equity is being eroded, which is unsustainable in the long term. The company's reliance on one-time tariff refunds for its Q2 beat highlights the fragility of its earnings quality, and without organic growth, the financial situation could deteriorate further.
FAQ
The key risks of holding NWL include: 1) Financial risk from high debt (D/E 2.36) and negative net margin (-3.96%), which could lead to liquidity issues if the turnaround fails. 2) Operational risk from declining revenue and competition, which could erode market share. 3) Macro risk from consumer spending slowdowns and rising interest rates, which could increase debt costs and reduce demand. 4) Company-specific risk from reliance on one-time tariff refunds for recent earnings beats, which may not be repeatable. The most severe risk is a failure to achieve the estimated EPS of $1.17, which could lead to a de-rating and a drop toward the 52-week low of $3.07.
The 12-month forecast for NWL is uncertain, with three scenarios: Bull case (30% probability) targets $7.00-$9.00, driven by successful turnaround and earnings recovery. Base case (45% probability) targets $5.00-$6.50, with gradual improvement and limited upside. Bear case (25% probability) targets $3.00-$4.00, if the turnaround fails and losses continue. The most likely scenario is the base case, with the stock trading around the analyst average target of $5.59. The key assumption is that the company can achieve the estimated EPS of $1.17, which would justify the current valuation.
NWL appears undervalued on a price-to-sales basis, with a PS ratio of 0.22x, significantly below the industry average. However, on an EV-to-EBITDA basis, the stock is trading at 21.2x, which is elevated, suggesting that the market is pricing in a strong earnings recovery. The forward PE of 8.38x implies that the market expects EPS to improve to $1.17, which would justify the current price. Given the negative trailing EPS, the stock is not cheap on a traditional earnings basis. Overall, the valuation is mixed: it is cheap on sales but not on earnings or EV metrics, reflecting the market's uncertainty about the company's future.
NWL is a speculative buy at current levels. The stock has significant upside potential if the turnaround succeeds, as indicated by the low PS ratio of 0.22x and forward PE of 8.38x. However, the company is currently unprofitable with a net margin of -3.96%, and the high debt-to-equity ratio of 2.36 adds risk. The analyst consensus is 'hold' with an average target price of $5.59, implying only 0.1% upside. For risk-tolerant investors, the stock could be a good buy if they believe in the turnaround story, but it is not suitable for conservative investors. A better entry point might be below $4.00, offering a wider margin of safety.
NWL is more suitable for short-term trading than long-term investment due to its high volatility and uncertain turnaround. The stock has a beta of 0.858, lower than the market, but it has experienced significant price swings, including a 39% jump in one day. The company's negative net margin and high debt make it a risky long-term hold, as the turnaround could take years to materialize. For long-term investors, a minimum holding period of 3-5 years would be required to see if the strategic initiatives pay off, but the risk of permanent capital loss is high. Short-term traders could capitalize on momentum and volatility, but they must be prepared for sharp reversals. Given the current uncertainty, a long-term investment is not recommended unless the company shows consistent profitability.