Newell Brands (NWL) is showing growth potential with strategic efforts leading to increased shares

From Nasdaq: 2024-04-05 13:53:00

Newell Brands Inc. (NWL) shows potential for growth with strong business strategies, focusing on optimizing category mix and driving growth in business units. The company is leveraging e-commerce capabilities, leading to a 8.9% rise in shares over the past three months, outperforming the industry’s 3.2% growth.

Newell is enhancing productivity through automation and Project Ovid, achieving $50 million in annual cost savings. Gross margin expanded 570 basis points year over year, with operating margin up 280 bps. The Network Optimization Project aims for $25-$35 million in annual pre-tax savings post-implementation by 2024.

Newell is implementing restructuring initiatives like Project Phoenix, targeting overhead cost reduction, supply-chain streamlining, and efficiency enhancement. Expected annual pre-tax savings of $220-$250 million post-implementation will offset inflation and enhance core capabilities. The company has already unlocked over $150 million in pretax savings through Project Phoenix.

In the same industry, Zacks Rank #2 Chef’s Warehouse (CHEF), Vital Farms Inc. (VITL), and Utz Brands Inc. (UTZ) offer growth opportunities, with positive earnings surprises and improved sales and earnings forecasts. Investors can explore these stocks for potential returns and value in the market.



Read more at Nasdaq: Here’s Why Newell’s (NWL) Strategic Efforts Appear Encouraging