Citi Pivots to Household Care for 2026 Favoring Newell Brands (NWL) as Inventory Destocking and Negative Comparisons End

Newell Brands Inc. (NASDAQ:NWL) is 1 of the cheap penny stocks to put in. On December 17, Citi raised the firm’s terms people connected Newell Brands to $3.75 from $3.50 portion keeping a Neutral standing connected the shares. Citi is recalibrating its absorption for 2026, moving distant from the bullish stance it held connected non-alcoholic beverages successful 2025. The steadfast present favors household and idiosyncratic attraction stocks, citing a stronger cardinal outlook. This optimism is driven by the extremity of inventory destocking cycles and much favorable year-over-year depletion comparisons.

Earlier connected December 2, UBS lowered the firm’s terms people connected Newell Brands to $4 from $5.50, portion maintaining a Neutral standing connected the shares. In a probe enactment to investors, the steadfast explained that it is remaining connected the sidelines, seeking greater clarity connected marketplace conditions earlier adopting a much affirmative stance connected the company.

Additionally, successful Q3 2025,  Newell Brands recorded nett income of $1.8 billion, which was a 7.2% year-over-year decline, with halfway income dropping 7.4%. These results fell abbreviated of expectations owed to important retailer inventory destocking and unreciprocated pricing actions taken to offset $180 cardinal successful incremental currency tariff costs. Despite the top-line pressure, the institution achieved a nett income of $21 million, which was a large plaything from the $198 cardinal nett nonaccomplishment successful the anterior year, and reported normalized diluted EPS of $0.17

Looking ahead, Newell Brands is preparing for a instrumentality to maturation successful 2026, fueled by a pipeline of implicit 20 Tier 1 and Tier 2 merchandise innovations. On December 1, the institution announced a planetary productivity program to chopped its workforce by 10% (over 900 employees), aiming for yearly savings of up to $130 million. For the afloat twelvemonth 2025, the institution expects nett income to diminution 4.5% to 5%, with normalized EPS projected betwixt $0.56 and $0.60.

Newell Brands Inc. (NASDAQ:NWL) designs, manufactures, sources, and distributes user and commercialized products worldwide. The institution operates successful 3 segments: Home & Commercial Solutions, Learning & Development, and Outdoor & Recreation.

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Disclosure: None. This nonfiction is primitively published at Insider Monkey.