Why Newell Brands Stock Keeps Rising
2026-08-04 03:24
•Joe Tenebruso •The Motley Fool
••• • Axe Cap view
Newell Brands Breaks Its Slump, What It Means for Investors
Newell Brands posts first sales growth in years, pushing shares up 13%, but South African investors should watch the USD/ZAR reaction.
Newell Brands’ fresh 3% sales growth—its first in over four years—came as a surprise and pushed its stock up more than 13%. That’s rare in consumer goods, especially when combined with a 75% jump in earnings per share. Tariff refunds helped profits, but improved operations matter more long term. For South African investors, this rally mostly signals a stronger dollar against the rand, as the company is US-focused. A higher USD/ZAR rate can boost companies with dollar costs but rand revenues, like some South African exporters. Still, direct investment in Newell isn’t ideal for the JSE as local retail stocks like Woolworths or Shoprite are more exposed to consumer sentiment here. The risk is that this earnings surprise is a one-off; if global inflation or interest rates shift suddenly, growth might stall. Keep an eye on the USD/ZAR as the primary signal. this is just our opinion and not financial advice
I’d watch USD/ZAR closely and trim rand-exposed consumer stocks if the dollar keeps gaining, but avoid Newell Brands directly. Local retailers remain a better pulse on South African consumer health. Confidence is moderate given global uncertainties.
- USD/ZAR
- Woolworths
- US inflation or rate changes hit consumer spending
- Rand strengthens suddenly reducing exporter gains
6/10
Newell Brands (NWL) stock surged 13.57% following strong second-quarter results showing 3% year-over-year sales growth—the first positive growth in over four years. The company's adjusted operating income jumped 56% and EPS climbed 75%, boosted by tariff refunds and improved operational capabilities. Management raised full-year EPS guidance, and Canaccord Genuity increased its price target from $9 to $11, suggesting potential 70%+ gains ahead.
Our take is based on reporting first published by The Motley Fool.