Today's Strong And Under The Radar Stock: Newell Brands (NWL)

Trade-Ideas LLC identified Newell Brands (NWL) as a strong and under the radar candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Newell Brands

(

NWL

) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Newell Brands as such a stock due to the following factors:

  • NWL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $167.2 million.
  • NWL has traded 1043.910000000000081854523159563541412353515625 options contracts today.
  • NWL is making at least a new 3-day high.
  • NWL has a PE ratio of 54.
  • NWL is mentioned 1.84 times per day on StockTwits.
  • NWL has not yet been mentioned on StockTwits today.
  • NWL is currently in the upper 20% of its 1-year range.
  • NWL is in the upper 35% of its 20-day range.
  • NWL is in the upper 45% of its 5-day range.
  • NWL is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on NWL:

Newell Brands Inc. designs, manufactures or sources, and distributes consumer and commercial products worldwide. The stock currently has a dividend yield of 1.6%. NWL has a PE ratio of 54. Currently there are 16 analysts that rate Newell Brands a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Newell Brands has been 4.5 million shares per day over the past 30 days. Newell has a market cap of $13.1 billion and is part of the consumer goods sector and consumer durables industry. The stock has a beta of 1.19 and a short float of 20.4% with 4.18 days to cover. Shares are up 11.1% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Newell Brands as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • NWL's revenue growth has slightly outpaced the industry average of 2.9%. Since the same quarter one year prior, revenues slightly increased by 4.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • 41.87% is the gross profit margin for NEWELL BRANDS INC which we consider to be strong. Regardless of NWL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, NWL's net profit margin of 3.08% compares favorably to the industry average.
  • NEWELL BRANDS INC's earnings per share declined by 28.6% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, NEWELL BRANDS INC reported lower earnings of $0.95 versus $1.33 in the prior year. This year, the market expects an improvement in earnings ($2.84 versus $0.95).
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
  • The debt-to-equity ratio is very high at 6.41 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Despite the company's weak debt-to-equity ratio, the company has managed to keep a very strong quick ratio of 4.27, which shows the ability to cover short-term cash needs.

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