NWL data by YCharts
(NWL - Get Report)
Newell Rubbermaid designs, manufactures, and markets consumer and commercial products worldwide. It offers its products through a portfolio of brands, including Rubbermaid, Sharpie, Graco, Calphalon, Irwin, Lenox, Levolor, Paper Mate, Dymo, Waterman, Parker, Goody, Rubbermaid Commercial Products and Aprica. Founded in 1903, it is headquartered in Atlanta. Newell Rubbermaid trades an average of 2.6 million shares per day with a market cap of $5.66 billion.
Rubbermaid is once again pressing against the lid of the recently expanded 52-week high. Rubbermaid appears sealed tight with an incredibly high trailing price-to-earnings ratio exceeding 60.
Don't let the trailing P/E fool you, though. Sometimes looking at previous financial results is comparable with driving your vehicle using the rearview mirror. Based on analysts' earnings projections, the P/E is receding down to a 10, a premium convincingly within conservative acquisition metrics.
Rubbermaid pays a reasonably attractive 2.1% dividend yield based on 40 cents a share per year. The forward payout ratio is less than 30% based on current year estimates. Anything under 50% is considered reasonably safe absent an underlying concern.
I like the chart pattern. The chart shows a stock in a bullish pattern and one that is breaking out with durability. After the recent retracement, Rubbermaid's renewed approach of the September highs is typical of a stock that is about to break higher.