Newell Brands (NWL) on Friday 1/24 traded over 10,000 calls, 9X daily average, as 2850 February $11 and 6500 February $12 calls saw buyer flows, cheap upside calls. NWL has 11,000 March $11 calls in open interest from buyer son 11/14 and a buy-write of 5000 March $10 calls on 11/20 while 1000 Jan. 2027 $10 calls bought on 11/8.

NWL broke out of a nice bottoming base to close the week and has been recovering from July 2024 lows near $5.50.

NWL operates in three segments: Home and Commercial Solutions, Learning and Development, and Outdoor and Recreation. NWL has a lot of recognizable brands like Rubbermaid, Crockpot, Mr. Coffee, Oster, Breville, Yankee Candle, Elmer’s, EXPO, Graco, Sharpie, Coleman, Contigo, and Marmot.

NWL has a $4.43B market cap and trades 14X Earnings, 9.9X EBITDA and 12.4X FCF with a 2.65% dividend yield with an improving growth profile. Truist raised its target to $17 in December upgrading shares to buy on the turnaround efforts and a return to organic growth set to re-rate shares higher.

Newell Brands has made significant progress in its turnaround efforts over the past 18 months, implementing a new operating model, upgrading talent, and driving structural improvements in gross margins and cash flow. The company is well-positioned to return to sustainable, profitable top-line growth as its front-end capabilities continue to improve and it benefits from favorable market and consumer trends. With a focus on deleveraging, disciplined capital allocation, and leveraging its strong brands and manufacturing capabilities, Newell Brands appears poised for continued performance improvement.