Shares of Newell Rubbermaid Inc. ( NWL ) soared to a new
52-week high of $27.00 on Friday, May 3, following its strong
first-quarter 2013 earnings results. The producer of Sharpie pens
and Rubbermaid containers eventually closed trade at $26.57, which
represented a solid year-to-date return of 18.3% and 46.1% over the
past one year.DEAN FOODS CO (DF): Free Stock Analysis ReportGAP INC (GPS): Free Stock Analysis ReportNEWELL RUBBERMD (NWL): Free Stock Analysis
ReportCONSTELLATN BRD (STZ): Free Stock Analysis
ReportTo read this article on Zacks.com click here.Zacks Investment
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 14.6x, 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 #2 (Buy) 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 design
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
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 22.6%.
Last week, the company reported first-quarter 2013 adjusted
earnings per share of 35 cents, beating 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 tax rate.
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 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 mid 2015.
Apart from Newell, other stocks in the retail space that touched
all-time highs on the same trading day are Gap
Inc. ( GPS
), Dean Foods Company ( DF ) and
Constellation Brands Inc. ( STZ ), reaching $39.13,
$19.57 and $50.34, respectively.