Newell Brands' 2026 Outlook: Stabilization or More Pain Ahead?

Newell Brands Inc. NWL enters 2026 at a pivotal juncture, with management signaling a year of stabilization rather than a sharp rebound. After navigating elevated tariff costs, softer consumer demand and ongoing category pressures in 2025, the company has reset expectations and shifted focus toward disciplined execution. Productivity gains, simplification initiatives and pricing actions remain central to its strategy, but visibility remains limited amid cautious retailer behavior and a competitive promotional environment.

For the first quarter of 2026, Newell Brands expects net sales to decline 3-5%, with core sales down 5-7%, reflecting timing headwinds tied to shelf resets and innovation shipments. The company projects a normalized operating margin of 2.5-3.5% and a normalized loss of 8-12 cents per share for the quarter. For the full year, sales are expected in the range of down 1% to up 1%, with core sales down 2% to flat. Management guided to a normalized operating margin of 8.6-9.2% compared with 8.4% in 2025, and normalized earnings of 54-60 cents per share, including an estimated 7-cent tariff headwind. Operating cash flow is projected at $350-$400 million, signaling improvement but not a full earnings recovery.

Beyond product development, Newell Brands is pairing innovation with increased brand investment to amplify its impact. Advertising and promotion spending reached its highest level as a percentage of sales in nearly a decade, underscoring management’s commitment to building long-term brand equity despite near-term margin pressure. This approach is particularly evident in the Home Fragrance segment, where the company executed a comprehensive Yankee Candle brand restage, featuring upgraded formulations, refreshed packaging and a 360-degree marketing campaign. While the segment faced short-term disruption from retailer destocking, early indicators suggest improved consumer engagement and a stronger positioning for recovery.

Newell Brands’ Zacks Rank & Share Price Performance

Shares of this Zacks Rank #3 (Hold) company have gained 17.5% in the past three months, outperforming both the industry and the broader Consumer Staples sector, which rose 12.4% and 13.1%, respectively.

NWL Stock's Past Three-Month Performance

Is NWL a Value Play Stock?

Newell Brands currently trades at a forward 12-month P/E ratio of 7.62X, which is notably lower than the industry multiple of 20.06X and the sector average of 18.25X. This valuation positions the stock at a modest discount relative to both its direct peers and the broader consumer staples sector.

NWL P/E Ratio (Forward 12 Months)

Stocks to Consider

Mama's Creations, Inc. MAMA manufactures and markets fresh deli-prepared foods in the United States. At present, it sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for MAMA’s current fiscal-year sales and earnings implies growth of 39.9% and 44.4%, respectively, from the year-ago figures. Mama's Creations delivered a trailing four-quarter earnings surprise of 133.3%, on average.

The Hershey Company HSY engages in the manufacture and sale of confectionery products and pantry items in the United States and internationally. It sports a Zacks Rank #1 at present. HSY delivered a trailing four-quarter earnings surprise of 17.2%, on average.

The Zacks Consensus Estimate for Hershey’s current financial-year sales and earnings indicates growth of 4.8% and 29.3%, respectively, from the prior-year reported levels.

US Foods Holding Corp. USFD engages in the marketing, sale and distribution of fresh, frozen and dry food and non-food products to foodservice customers in the United States. It currently carries a Zacks Rank #2 (Buy). USFD delivered a trailing four-quarter earnings surprise of 2.2%, on average.

The Zacks Consensus Estimate for US Foods Holding’s current fiscal-year sales and earnings implies growth of 5.4% and 20.9%, respectively, from the year-ago figures.

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This article originally published on Zacks Investment Research (zacks.com).

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