Friday, October 16, 2009
Dave Mock :: Townhall.com Columnist
A Big Upgrade for Newell Rubbermaid
by Dave Mock
Vote on It:
Average Vote:
[+] Text [-]
 
 

Every day, the sun rises on Wall Street, and a plethora of professional analysts wake to issue new opinions on stocks. Here at the Fool, we use our "This Just In" column to examine some of these picks-- and the track recordsof the firm behind them -- to help Fools make better investing decisions.

In addition to following professional banks, anyone can use Motley Fool CAPSto monitor the collective opinions of more than 140,000 members, many of whom demonstrate better investing insight than published analysts 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 Fool.com

Copyright © 2009 The Motley Fool, LLC. All rights reserved.

Share:
Vote on It:
Average Vote:
 
About The Author

Dave Mock is a Motley Fool contributor.

Be the first to read Dave Mock's column. Sign up today and receive Townhall.com delivered each morning to your inbox.

Sign Up to Post Your CommentsSign Up to Post Your Comments
If you are already registered, click here to login. Otherwise, please take a few seconds to register with Townhall.com. Once you sign up, you’ll be able to post your comments immediately, use the action center, get podcasts, and more!
Note: Fields marked with a red asterisk (*) are required.
Salutation:
First Name:
*
Last Name:
*
Email:
*
Nickname:
*
Note: Nick name will be shown when you post comments.
Address 1:
*
Address 2:
City:
*
State:
*
Zip:
*
Phone:
      
The very best in financial advice from Dave Ramsey, Larry Kudlow, Motely Fool and many more plus Dilbert!