Should You Think About Buying Newell Brands Inc. (NASDAQ:NWL) Now?

Newell Brands Inc. (NASDAQ:NWL), might not be a large cap stock, but it saw significant share price movement during recent months on the NASDAQGS, rising to highs of US$21.42 and falling to the lows of US$13.89. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Newell Brands’ current trading price of US$15.03 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Newell Brands’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Check out the opportunities and risks within the US Consumer Durables industry.

Is Newell Brands Still Cheap?

Great news for investors – Newell Brands is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $22.31, but it is currently trading at US$15.03 on the share market, meaning that there is still an opportunity to buy now. Another thing to keep in mind is that Newell Brands’s share price may be quite stable relative to the rest of the market, as indicated by its low beta. This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again.

Can we expect growth from Newell Brands?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. However, with a negative profit growth of -9.5% expected 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? Although NWL is currently undervalued, the adverse prospect of negative growth brings about some degree of risk. Consider whether you want to increase your portfolio exposure to NWL, or whether diversifying into another stock may be a better move for your total risk and return.

Are you a potential investor? If you’ve been keeping an eye on NWL for a while, but hesitant on making the leap, I recommend you dig deeper into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.

If you want to dive deeper into Newell Brands, you’d also look into what risks it is currently facing. For example, Newell Brands has 4 warning signs (and 2 which can’t be ignored) we think 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.