Newell Strengthens Capabilities and Innovation to Power Growth

Thursday, Mar 26, 2026 2:42 pm ET2min read
NWL--
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- Newell Brands invests in innovation and marketing to strengthen operational capabilities.

- Its One Newell model aims to simplify structure and enhance accountability.

- Shares fell 5.5% recently, trading at a significantly lower P/E ratio.

- Earnings estimates show a slight decline in 2026 followed by growth in 2027.

- The company holds a Zacks Rank #3, indicating a hold recommendation.

Newell Brands Inc. NWL is strengthening its front-end and back-end capabilities. The company is investing in consumer insights, brand building, innovation, marketing and go-to-market execution. NWL’s global productivity plan is to boost competitiveness and elevate consumer value and long-term value creation.

Newell’s operating model is designed to accelerate the corporate strategy by driving organizational effectiveness and agility alongside developing a high-performing and innovative culture. NWLNWL-- is making progress in its business development, enhancing its brand distribution. The company is improving manufacturing, distribution, procurement and IT, while simplifying operations and enforcing stronger discipline and accountability.

The company continues to advance its organizational realignment through the “One Newell” operating model, which is designed to simplify the organization, enhance accountability and improve operational efficiency. The realignment initiative focuses on reducing complexity while freeing up resources that can be reinvested into the business to support long-term growth. The One NewellNWL-- model is intended to strengthen operational discipline, improve coordination across brands and business units, and create a more efficient structure capable of supporting sustainable growth.

Innovation is at the core of Newell’s growth approach. It continues to emphasize consumer-led innovation as a key pillar of its long-term strategy, with focused launches across core categories aimed at strengthening brand relevance and execution. In Baby and Writing, brands such as Graco, Sharpie and Expo continue to benefit from targeted innovation and assortment expansion, supporting relatively stronger performance compared with the broader portfolio.

Newell's priorities focus on improving margins by leveraging cost savings to offset inflation and marketing investments. The company continues to leverage productivity, simplification and disciplined cost management to offset macro pressures and support increased brand investment. Key initiatives include SKU rationalization, technology standardization and the deployment of AI-based tools to drive efficiency and agility.

NWL’s Price Performance, Valuation and Estimates

Shares of Newell have lost 5.5% in the past three months compared with the industry’s drop of 1%.

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Image Source: Zacks Investment Research

From a valuation standpoint, NWL trades at a forward price-to-earnings ratio of 6.17X compared with the industry’s average of 17.68X.

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Image Source: Zacks Investment Research

The Zacks Consensus Estimate for NWL’s 2026 earnings per share (EPS) implies a year-over-year decline of 1.8% while that of 2027 shows growth of 11.8%. The estimates for the aforesaid years have been stable in the past 30 days.

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Image Source: Zacks Investment Research

Newell stock currently carries a Zacks Rank #3 (Hold).

Stocks to Consider in the Consumer Staples Space

Freshpet, Inc. FRPT, which is a pet food company, currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Freshpet’s current financial-year sales indicates growth of 9.9% from the prior-year level. FRPT delivered a trailing four-quarter earnings surprise of 50%, on average.

Keurig Dr Pepper Inc. KDP is a prominent integrated brand owner, manufacturer and distributor of beverages across the United States, Canada, Mexico and the Caribbean. The company currently has a Zacks Rank #2.

The Zacks Consensus Estimate for KDP’s 2026 EPS indicates growth of 10.7% from the previous year’s reported figure. Keurig Dr Pepper delivered a trailing four-quarter average earnings surprise of 3.1%.

Medifast, Inc. MED, which is a leading manufacturer and distributor of clinically-proven healthy living products and programs, currently carries a Zacks Rank of 2. MED missed the average earnings surprise by a sharp margin in the trailing four quarters.

The Zacks Consensus Estimate for Medifast’s current financial-year sales indicates decrease of 27% from the year-ago number.

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Newell Brands Inc. (NWL): Free Stock Analysis Report

Freshpet, Inc. (FRPT): Free Stock Analysis Report

MEDIFAST INC (MED): Free Stock Analysis Report

Keurig Dr Pepper, Inc (KDP): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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Zacks is the leading investment research firm focusing on equities earnings estimates and stock analysis for the individual investor, including stock picks, stock screening, portfolio stock tracker and stock screeners. Copyright 2006-2026 Zacks Equity Research, Inc. editor@zacks.com (Manaing editor) webmaster@zacks.com (Webmaster)

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