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Motley Fool CAPSto monitor the collective opinions of
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do.
After spending much of this year locked into a four-star
rank, enough top-performing CAPS members have recently
turned bullish on
Newell Rubbermaid (NYSE: NWL) to boost the
company back to the
five-starlevel. A total of 326 members have given their
opinion on Newell Rubbermaid, with many offering analysis and
commentary to explain their recent optimism.
Newell Rubbermaid makes consumer products, ranging from
the office supplies found at stores like
Office Depot (NYSE: ODP) to the baby products
listed on
Amazon.com (Nasdaq: AMZN). Despite a slow
economy, with constrained consumer spending and
worrisome unemployment, Newell Rubbermaid has recently
managed to grow profits and drive market share. It pulled in
14% higher earnings in the second quarter, even as its
revenue fell. Lower material costs, and the abandonment of
some lower-margin products, helped the company keep its
bottom line healthy.
Newell Rubbermaid grew its gross margin by 3 percentage
points, while generating positive free cash flow and topping
Wall Street's forecasts. On top of this, the company raised
its full-year earnings and operating cash flow outlook.
Challenges still remain as the economy recovers, and
dropped product lines could affect the company's future
revenue. Still, some CAPS members like Newell Rubbermaid's
long-term outlook. When things pick up again at retailers
such as
Lowe's (NYSE: LOW),
Home Depot (NYSE: HD),
Wal-Mart Stores (NYSE: WMT), and
Target (NYSE: TGT), investors expect that
Newell Rubbermaid will benefit. While shares have
seen healthy gainsin recent months, many CAPS members
still consider this a good opportunity to pick up a strong
company at a reasonable price.
Do you think Newell Rubbermaid deserves its elevated
status? Add your thoughts in the comments box below on this
page, or head over to CAPS to
rate the
companyand check out our community's opinions and
information, absolutely free.
This article was originally published as
A Big Upgrade for Newell Rubbermaidon
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