Newell Brands NWL shares rallied 6.9% in the last trading session to close at $5.89. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 50.6% gain over the past four weeks.
The stock is driven by gains from its strategic efforts. The company is strengthening its operations and long-term competitiveness through disciplined execution of productivity, simplification and innovation initiatives. Newell's focus on automation, supply chain optimization, SKU rationalization, simplification, strategic pricing is driving efficiency gains.
This consumer products company is expected to post quarterly earnings of $0.19 per share in its upcoming report, which represents a year-over-year change of -20.8%. Revenues are expected to be $1.96 billion, up 1.5% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Newell Brands, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on NWL going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Newell Brands is part of the Zacks Consumer Products - Staples industry. Energizer Holdings (ENR), another stock in the same industry, closed the last trading session 0.8% lower at $22.35. ENR has returned 20.9% in the past month.
Energizer's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.85. Compared to the company's year-ago EPS, this represents a change of -24.8%. Energizer currently boasts a Zacks Rank of #3.
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This article originally published on Zacks Investment Research (zacks.com).