Newell Rubbermaid Inc.
) soared to a new 52-week high of $26.58 on Friday, Apr 19,
beating its previous high of $26.11 reached on Mar 28. The
producer of Sharpie pens and Rubbermaid containers eventually
closed trade at $26.37, which represented a solid year-to-date
return of 16.6% and 53.2% over the past one year.
Average volume of shares traded over the last 3 months stands at
approximately 2.927 million. Moreover, the stock currently trades
at a forward P/E of 14.5x, almost at par with the peer group
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, are the major factors that drove the shares
of this Zacks Rank #3 (Hold) company to a new high.
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 one roof.
With respect to earnings surprises, Newell has topped the Zacks
Consensus Estimates for the past several years, with a trailing
four-quarter average surprise of 5.0%. At the same time, an
impressive return on equity compared to its peers acts as a
catalyst for the stock. It has a 12-month ROE of 24.9%, which is
above its peer group average of 21.9%.
In February, the company reported adjusted earnings of 43 cents
per share for the fourth quarter of 2012, marginally beating the
Zacks Consensus Estimate of 42 cents and year-ago quarter
earnings of 40 cents. Net sales inched up 1.6% to $1,518.8
million, surpassing the Zacks Consensus Estimate of $1,514.0
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 it reduce operating costs and complexity of the
organization, while it will increase investments in the most
important growth areas within the business. The company is
expected to be saving a cumulative $270-$325 million annually
from the middle of 2015.
Apart from Newell, other stocks in the retail space that touched
all-time highs on the same trading day are
The Home Depot Inc.
The Clorox Company
Rite Aid Corp.
), reaching $74.28, $90.10 and $2.48, respectively.
CLOROX CO (CLX): Free Stock Analysis Report
HOME DEPOT (HD): Free Stock Analysis Report
NEWELL RUBBERMD (NWL): Free Stock Analysis
RITE AID CORP (RAD): Free Stock Analysis
To read this article on Zacks.com click here.