The shares of
Newell Rubbermaid Inc.
) soared to a new 52-week high of $27.63 on Friday, May 10,
following its strong first-quarter 2013 earnings results. The
producer of Sharpie pens and Rubbermaid containers eventually
closed trade at $27.58, reflecting a solid year-to-date return of
22.8% and 53.4% over the past one year.
Average volume of shares traded over the last 3 months stands
at approximately 2.939 million. Moreover, the stock currently
trades at a forward P/E of 14.72x, slightly above the peer group
average of 14.62x.
An impressive record of posting better-than-expected
bottom-line results, solid top-line growth, margin improvement, a
favorable 2013 outlook, notable return on equity and a reasonably
healthy financial position, were the major driving forces that
led the shares of this Zacks Rank #3 (Buy) company to the new
Further, the company is on the threshold of a new growth phase
with the development of a state-of-the-art Design Center in
Kalamazoo, Mich. The new center, ideally located in a region
known for its talented pool of designers from around the world,
will be spread over 40,000 square feet, employing up to 100
Slated to open in early 2014, this facility will assist
designers at studios and immersion labs, along with marketing and
R&D teams to develop and evaluate new creations, all under
With respect to earnings surprises, Newell has topped the
Zacks Consensus Estimate for the past several years, with a
trailing four-quarter average surprise of 5.0%. In the last
concluded quarter, the company outdid Zacks' expectations by
Newell posted outstanding bottom-line results for the first
quarter of 2013 on May 3. The quarterly earnings per share of 35
cents beat both the Zacks Consensus Estimate and year-ago quarter
earnings of 32 cents. The earnings growth resulted from a better
operating performance, lower interest expenses and a favorable
Leveraging its strong brand equity, Newell Rubbermaid expects
core sales growth of 2-4% and adjusted earnings in the range of
$1.78-1.84 per share for fiscal 2013.
Further, we believe that Newell's Project Renewal program will
help reduce operating costs and the complexities of the
organization, while increasing investments in the most important
growth areas within the business. The company is expected to be
saving a cumulative $270-325 million annually from mid-2015.
Other stocks in the retail space that touched all-time highs
on the same trading day are
Home Depot Inc.
Abercrombie & Fitch Company
) which reached $76.20, $54.20 and $41.43, respectively.
ABERCROMBIE (ANF): Free Stock Analysis Report
GAP INC (GPS): Free Stock Analysis Report
HOME DEPOT (HD): Free Stock Analysis Report
NEWELL RUBBERMD (NWL): Free Stock Analysis
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